Demystifying investment myths
THE world of investment is full of myths, and it is important to distinguish reality from fiction if you are to succeed as an investor in the long run. Not all commonly held investment beliefs are true
Myth #1 — It’s hard to start investing, and it’s just for the experts
One of the main investment misconceptions is that it is complicated and should be left for experts only.
Nevertheless, learning about the securities industry will bring you well above the average person who might have been exposed to such options.
A wealth of knowledge can be found online via www.seczim.co.zw, where you can learn more about the securities market industry in Zimbabwe.
Myth #2 — It is overly risky
Investing is not risk-free, but you are entirely in charge of how much risk you are willing to take.
If you are a risk averse (not willing to take risks) individual, there are several investments, such as government bonds, that will allow you to invest without much risk.
Myth #3 — You have plenty of time to start investing
If there was a secret recipe to optimising returns, it would include one key ingredient: time, the earlier you decide to have market exposure and start investing, the better.
Myth#4 — You need to time the market
Markets are the result of several growing factors.
Although events are referred to as cyclical, it is impossible to predict market dynamics with total accuracy.
After all, there is no means to time the market.
Myth #5 — Little knowledge is better that none
It is crucial for investors to have clear understanding of where their capital is being invested.
Investors who do their homework are the ones who excel.
The risk of investing in something that you do not fully understand is significantly higher than the cost of engaging a licensed investment advisor
Avoid investing based on myths, get the facts !