Which Of The Following Statements About Investing Is False?

The correct answer to the question is option (d) as investing is not a guaranteed way of making money. There’s nowhere written that you are going to make sufficient money out of this method (investing in stocks). A chance of losing money always remains when going for investing in stocks. 

In this article, I will mainly be discussing some of the more common myths regarding investing in the stock market. Keep reading till the end of the article to find out more information about the same!

Common Myths About Investing

Here is a list of a few other common myths that surround the prospect of investing money in stocks:

It Is Complicated

There are a lot of financial terms and investment jargon involved that appear complex – it’s as if that language gets understood by the financial experts only. If you ever get overwhelmed, then only remember that these sorts of experiences describe everyday activities and experiences that all of us experience.

Investing Is A ‘Get Quickly Rich’ Scheme

This is also a fact that needs to be established that there are no shortcuts to getting instant wealth here. People who claim otherwise are mostly likely looking to involve you in a financial scam or scheme. 

A legitimate and genuine form of investing entails an endeavor meant for the long term and which also requires discipline, patience, and a focus on hyper-realistic goals. You need to do your absolute best to resist the temptation of making impulsive decisions of investment based on speculative trends and short-term market movements.

Initially Requires A Whole Lot Of Money

As opposed to popular forms of belief, you do not need any substantial amount of money to begin with investing. Yes, it certainly can help have more because bigger forms of investments lead to much higher returns but this in no way can be deemed as a necessity. There are a lot of investment platforms that make it accessible for a lot of people to invest in varying amounts of budgets. 

You are certainly allowed to begin with small amounts of investment and then gradually increase the amounts of payments over some time. 

Risky In Nature

This is another misleading assumption. According to this myth, investing only works in the same way as gambling does and that’s assuming it is all about speculation and luck. 

Just like everything else in life, luck also plays a role but it is not the only driving force behind all of the successful investments. 

Investing in stock only involves a need for a very thorough analysis, research, and making of informed decisions based on data and facts. There have also been a lot of successful inventors who have only developed various strategies after managing risks effectively and by diversifying their portfolios – all of whom minimize the fear of risk.

Tip: If you missed out on reading the answer to the question “Which of the following statements about investing is false” then you can go back to give it a read.

It Mainly Depends On Timing

There is no such thing as timing when it comes to investing in Stock Markets. It is impossible to know what the future holds when it comes to stock markets. It is often said that if someone wants to make good returns from their investments then they should buy stocks when they are absolutely low and then sell them when they are high. 

But that is not how it works in reality as predicting outcomes becomes nearly impossible and this strategy only leads to very poor decision-making and a lot of missed opportunities. 

What this indicates is — you might invest at a time which you deem to be the best when in actuality it might be the worst time for investing according to financial experts.

To Wrap It Up!

Prior to going ahead with investing in stocks, you need to know that they are extremely volatile and subject to market risks. Make sure to do proper research before investing in any kind of stock.

Thank you for reading this article up till the end. I hope you found the information regarding “which of the following statements about investing is false” to be useful.

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