Investing Myths

#1 - I need a lot of money to invest

There is absolutely no reason why only people with millions in their bank accounts should invest in the stock market.

Trading shares is now so simple and inexpensive that anyone with a few thousand dollars can enjoy investing. In fact, it’s best to start small, so you can learn from your mistakes without spending too much money. Investing is for everyone.

#2 - The risk is too high - I don't want to gamble with my savings

It is true that stock investing has many of the same characteristics associated with gambling, for example. poker. In both situations, participants try to estimate a probability and size of gain and loss for a given decision (poker hand or stock purchase).

But stock investing is not risky if done wisely. If you invest based on the company’s fundamental value, long-term (min. 5 years) and spread your investments across a range of companies (min. 8) and asset types (stocks, cash, bonds, etc.), you have effectively limited the risk of permanent loss of your funds. The only risk that should matter to the private investor.

Not all investing requires in-depth knowledge of companies and finances. Keep it simple.

#3 - I don't have time to learn about investing

Investing can be both complex and time-consuming. But it doesn’t have to be. In fact, you can simply set aside a fixed amount of money each month and invest it in a few index funds. You’ll end up with more wealth than the vast majority of your friends and acquaintances.

If you don’t have the time or interest in finding and analyzing companies yourself, I’ve written a short guide to help you with a minimum of effort. Read the guide here.

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Disclaimer

The above has been prepared by Børsgade ApS for information purposes only and cannot be regarded as a solicitation or recommendation to buy or sell any security. Nor can the information etc. be regarded as recommendations or advice of a legal, accounting or tax nature. Børsgade cannot be held liable for losses caused by customers’/users’ actions – or lack thereof – based on the information in the above. We have made every effort to ensure that the information in the above is complete and accurate, but cannot guarantee this and accept no liability for errors or omissions.

Readers are advised that investing may involve a risk of loss that cannot be determined in advance, and that past performance and price development cannot be used as a reliable indicator of future performance and price development. For further information please contact info@borsgade.dk

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