The 3 Biggest Investing Myths

Written By Jason Williams

Updated January 10, 2024

I hope this article finds you well. Remember, if it does, how lucky you are to be in such comforts as many of our fellow men and women cower in the darkness fearing for their lives.

I’m not going to focus on the atrocities being perpetrated in the Middle East today. You’ve already heard enough about it from my colleagues and others in the independent press.

I’m also not going to speak of what’s going on in Eastern Europe. That’s not what I’m here at Wealth Daily to write about and there's not much more to discuss anyway.

Instead, I’m going to take a different course of action and, hopefully, give you another much-needed break from the news of the day.

"A Journey of a Thousand Miles Begins With a Single Step" — Lao Tzu

Over the last decade, I've embarked on a fulfilling journey, navigating the vast financial landscape and helping retail investors, both seasoned and new, chart their courses toward a secure and prosperous retirement.

And over the past few weeks, I’ve been sharing some of the details of the journey that led me from my first career as an investment banker on Wall Street to my favored profession as an advocate for Main Street investors…

We’ve discussed some of the distinguished professionals who mentored me in college, during my postgraduate studies at Harvard Business School, and on Wall Street itself.

We’ve slipped into the back rooms of those storied investment houses where fortunes are made and the future of the common man is negotiated by an elite class most refuse to acknowledge even exists.

And we’ve talked about the decision I made to leave that world behind in favor of a new life dedicated to helping regular investors, not the super-rich, achieve their own financial dreams.

Last week, I even shared the heart-wrenching yet triumphant story of my first client, James, a young man who thought he’d lost it all and would never recover but managed to right his ship and sail on to victory.

And like James, every individual I've assisted has had a unique story, unique aspirations, and unique concerns.

What's truly heartening, though, is that, despite the myriad of personal differences, many have found common ground in the world of investing, realizing that it's a journey they’re on together.

But one thing they and many others also have in common is that taking the first step was the hardest step of the process.

The vast expanse of the stock market can appear daunting even to a sophisticated, experienced investor.

But it can seem even more so when one is shackled by myths and misconceptions that create unwarranted barriers.

So my purpose today is to address and debunk some of these misconceptions in the hopes that I can ease your journey into the fascinating world of investing.

"You Need a Lot of Money to Start"

And the first investing myth we’re going to address is probably the No. 1 reason people give me for why they haven’t started investing yet.

I don’t have any official tally, but I’d estimate that at least eight out of 10 people who haven’t started investing have told me that they just don’t have enough money.

It's apparently a common belief that hefty sums are required to make one's mark in the stock market.

But in reality, that couldn’t be any further from the truth. There have always been stocks that cost as little as $20 a share.

And today's investment avenues are more democratic than ever thanks to advances in technology…

Micro-investing platforms have emerged, allowing individuals to start their journey with minimal amounts. You can literally start an account by rounding up the change on your debit card purchases.

Over time, these small investments can accumulate and grow (at the EXACT same rates as larger investments), showcasing the power of compound interest.

There are also now what’s known as “fractional shares” of companies. You don’t even have to be able to afford a whole share to invest in a stock now!

You want to be an owner of Berkshire Hathaway’s $528,050-per-share stock but only have $5.28 in your account? Not a problem. You’ve got enough to buy a fraction and become an owner, too.

Remember, it’s consistency and patience, rather than hefty initial sums, that often leads to substantial growth.

"You Need to Be a Financial Expert to Be Successful"

This next one is easily No. 2 on the list of reasons people give me for staying away from the stock market. It might even give No. 1 a run for its money from time to time.

People say it in different ways: “I don’t know enough about investing to make money,” “It’s just too complicated for anyone but a professional,” or “I don’t have enough time to study the markets.”

It’s all the same thing. And it’s that common misconception that you need to be a financial expert to be successful in the markets.

Now, look, I’ll be the last one to tell you that it doesn’t give you an edge. Otherwise, my entire education and career would have been pointless.

But financial knowledge, while beneficial, isn't the sole determinant of success in the investment realm.

Many accomplished investors started their journeys with little more than curiosity and determination. Warren Buffett was a broke 19-year-old who got excited after reading a book.

And with the plethora of resources available today, from books to online courses, acquiring foundational knowledge has never been easier.

Furthermore, seeking guidance from experts can supplement your evolving understanding, ensuring you make informed decisions.

And that’s never been easier either. You’re doing it right now by reading Wealth Daily.

"It's Better to Wait for the 'Right' Time"

This one is another of the top reasons folks give me when I ask them to explain what’s keeping them out of the stock market.

They just don’t feel like it’s the “right” time to put money in. I mean, what if the markets go down?

And I understand. The allure of "timing the market" has always been strong, but in practice, it's an endeavor fraught with unpredictability.

It’s far better saved for experienced traders who are using time-tested rules-based systems. (We'll talk more about those later.)

Rather than waiting for elusive perfect moments, adopting a systematic investment approach almost always yields better results.

Dollar-cost averaging, a method where regular investments are made regardless of market conditions, can do a lot to mitigate the risks of market volatility.

Over time, this strategy not only instills discipline but also capitalizes on market lows and highs in a balanced manner.

To those who tell me that it’s not the right time to get started, I always say the same thing: “There’s never been a better time for you to get started than right now.”

The Road to Successful Investing

The real main bullet point of today’s presentation, as you may have surmised, is that the road to investment success isn't reserved for a select few.

In fact, anyone armed with perseverance, a learning mindset, and the right guidance can carve their own path.

The world of investing is vast, and within it lie countless opportunities waiting to be discovered.

By breaking free from these misconceptions, and with a focused approach, you can harness these opportunities to your advantage.

At its core, investing is as much about mindset as it is about money.

With every investment, you're not just allocating funds but also investing in your future self.

It's a continuous journey of learning, adapting, and growing.

And you’ll see, as soon as you get started, that with the right strategy and a little help from your friends here at Wealth Daily, it’s an incredibly prosperous journey.

A Team of Experts at Your Service

As the managing editor of this publication, I’m proud to be the leader of an extensive team of investment experts…

A team driven by the singular aim of ensuring Main Street investors like you aren't overshadowed by the elite professionals I (perhaps regrettably) used to work hand in hand with on Wall Street.

One standout member of our team, whom many of you have already met but I’d like to reintroduce, is Jason Simpkins

Simpkins Blackbird

With unparalleled expertise in defense, technology, and energy sectors, Jason's insights are particularly crucial in these uncertain times.

As global tensions rise and geopolitics becomes increasingly intricate, understanding these sectors becomes indispensable.

Our present era, marked by rapid technological advancements and geopolitical complexities, presents both challenges and opportunities for every investor.

Navigating this landscape requires both foresight and expert guidance.

And with Jason's recent findings in the defense sector, you have the chance to be at the forefront of potentially groundbreaking investment opportunities.

Seize the Opportunity

Every journey begins with a single step, and I invite you to take that step with us today.

Discover Jason's insights and let them be the catalyst for your enriched investment journey.

By leveraging his expertise, you can unlock opportunities that many remain oblivious to.

Take some time today to delve deeper into Jason's latest revelation in the defense industry.

In this ever-evolving world, staying informed and proactive is the key to investment success.

With our team by your side, you'll be well-equipped to navigate the challenges and seize the opportunities that lie ahead.

To your wealth,

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Jason Williams

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After graduating Cum Laude in finance and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team responsible for billions of dollars in daily trading. Jason left Wall Street to found his own investment office and now shares the strategies he used and the network he built with you. Jason is the founder of Main Street Ventures, a pre-IPO investment newsletter; the founder of Future Giants, a nano cap investing service; and authors The Wealth Advisory income stock newsletter. He is also the managing editor of Wealth Daily. To learn more about Jason, click here.

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