It’s important to identify the myths of investing, which are roadblocks to your success as an investor.
Myth: “Stocks can be bought and sold in advance of their future price movement.”
The Truth: On average, 80 percent of all professional stock pickers fail to beat their benchmarks.
Myth: “The markets are predictable and can be timed.”
The Truth: Markets respond to people’s emotions, and people respond to the news and events.
Track Record Investing
Myth: “Mr. ‘Smith’ has predicted the market correctly every time, therefore he knows what will happen.”
The Truth: The probability of someone showing consistent success is higher with such a large population.
Myth: “Investors make decisions based on logic and sound strategy.”
The Truth: Most investors make decisions based on emotions.
I Don’t Need Help
Myth: “I can do this myself. I will succeed without any guidance.”
The Truth: It is very difficult for any of us to objectively advise ourselves without making emotional decisions.
When it comes to analyzing your portfolio, don’t let emotions interfere. Try answering these essential questions objectively:
- Are your investments aligned with your risk tolerance?
- Are your investments distributed into now-soon-later income buckets?
- Are your investments sufficiently diversified?.
- Is your wealth-building advisor accountable and available to you?
To get started analyzing your existing portfolio and getting financially organized, call us at (877) 714-2362 to schedule a no-cost introductory consultation.