Myths about how to invest in the stock market abound. The truth is that you really can take control of your financial future and do quite well.
Here are some of the most common myths surrounding stock market investing.
- It requires advance training and college degrees. Nothing could be further from the truth. While education is certainly beneficial, the stock market is constantly changing. Invest in your own ongoing education by using online resources, read books and do your own intensive research into the industry and market.
- You get what you pay for. When it comes to financial sales-people they would love to make you believe that your rate of return more than pays for the financial advice and expertise they provide. Sadly, the statistics show differently. Eliminating the middle man significantly increases the rate of return for many investors. Understand what you are paying for and then decide if it is really worth it.
- Pay-for-Performance. Mutual fund companies have been criticized for high fees without demonstrated performance. Especially once the fees are subtracted, performance isn't always that impressive....some would even call it dismal. Don't pay to play if the fund doesn't perform.