Tuesday 23 March 2021
Here are 3 key concepts, 2 key resources, and 1 key action, to help you bust some common investing myths.
Over the last few weeks, through this email, we have addressed some of the major myths that we hear about investing. These myths are often stopping you from starting your investing journey, but in reality, these myths have been busted.
The Get Started Investing community continues to grow, and a lot of new members have joined in the last week. Before we continue to break down more fundamentals we wanted to bust three myths that continually stop people from starting.
- Myth: Now is not the right time.
Busted: There is never a ‘perfect’ time to start investing. It is impossible to time the market – you have no idea what is going to happen tomorrow, in 1 year or in 10 years. It’s more important to spend time IN the market than trying to time the market.
Waiting on the sidelines for a correction, or for that ideal moment, will only lead to more decision-paralysis, and ultimately, you could miss out on a lot of growth in the meantime.
Just start! Start small, and chip away. Let time be your friend, not your enemy. The longer you are in the markets, the greater chance you give yourself to build a meaningful portfolio over a long period of time.
- Myth: I don’t have enough money.
Busted: You can now start investing with as little as a few cents. Thanks to micro-investing apps, and reduced minimum investment requirements by brokers, you no longer need a minimum of $500 to get access to the markets.
It’s time to stop thinking you need to be rich to invest. You get rich by investing, and it’s never been easier to start with very small amounts.
- Myth: There stock market is too risky.
Busted: Did you know, based on the past 100 years of stock market returns, the probability of losing money over a 20-year period is 0%.
Sure, stock markets crash, but they equally recover and then continue to climb higher. Of course, some companies crash and never recover, but if you’re invested in the broader market the “best recipe for loss avoidance is time: as time horizons lengthen, the probability of losing money in stocks has decreased.”
Forget the short-term, and think about the long-term – then you’ll see that the stock market isn’t as risky as you first thought.
- To improve your understanding of micro-investing, and to understand how it could work for you, check-out this blog post
- If you’re still not convinced that the stock market isn’t as risky as some people make it out to be, take a quick read of this. It could be all you need to start your journey.
The first month of this email was designed to unpack some of the more common excuses and myths we often hear from people who are yet to start their journey. We hope we’ve been able to encourage you to just start! There is no better way to learn than by doing.
So, just start!
Over the next few months, we’re going to focus on some of the more specific fundamentals of investing – brokers, indexes and ETFs, building a portfolio, all the jargon, plus a lot more.
Community Call Out
Get Started Investing – is all about helping beginner investors break down barriers. The best way to work out what those big hurdles are, is to hear it directly from you, the beginner investor.
So, we’re asking for you to share your story with us. It’s really simple – leave your details or a voice message here, so we can get in touch about being on the show.
We really want to hear from you, so don’t be shy – and remember there’s no such thing as a stupid question.
Some of our favourite resources and offers to help you during your journey:
- $50-$200 OFF some amazing investing courses by our friend-of-the-show, Owen
Track your investment portfolio with Sharesight.
- Get a free stock when you sign-up to Stake, using the code EQUITYMATES
- Get exclusive access to our favourite data and insights platform, TIKR
- Get free trades if you plan to use the broker SelfWealth