There are a number of investing myths that lead investors astray all the time. Sometimes it’s sound advice that fails under specific circumstances. Other times it’s just plain wrong. Either way, it leads to investors making mistakes and taking unnecessary losses.
Safety In Cash
There is safety in cash or so the saying goes. A good online brokerage account includes money market rates on any money you don’t invest. If rates weren’t so low, this investing myth would be sound advice.
Cash not growing at a rate equal to or above the inflation rate is a losing venture. You may not lose money in the sense of having less dollars, but you will lose purchasing power. If you don’t believe me, toss $100 in a mattress and in twenty years see how far it gets you compared to now. Continue Reading…
Often times you’ll here a company announce a stock split. If you invest in stocks long enough, you’ll eventually experience it yourself.
If you’ve ever heard “don’t put all your eggs in one basket”, it’s used to describe a simple investing principle known as diversification.
TD Ameritrade is one of the biggest online brokers. It’s won many awards and receives high ratings from the financial press. That all sounds great, but it’s not why I use it.