Top 5 Biggest Myths about Stock Market Investing!

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Good day subscribers thank you so much for joining me today i am jeremy this is a financial education channel and today we’re talking about the biggest stock market myths i’m giving you the five biggest myths that people have when they come into the stock market in trying to understand in things and this is video one on the new three-part series i’m doing this

Week which is breaking down the biggest myths on the stock market which is today’s video tomorrow i’m going to break down the biggest myths about personal finance and then the last day i’m going to break down the three biggest myths on starting a business and entrepreneurship so let’s go ahead and get into this today guys number one myth out of all them is that

You are at a disadvantage as a small investor this could be so much this isn’t even close to being the truth guys this is such a big myth that so many people fall trap into you’re a small investor you’re at a disadvantage to the big guys you know the ones that are running those big hedge funds and whatnot no absolutely not you’re not at a disadvantage you would

Actually have an advantage you have the advantage over them i’ll give you a few examples one those individuals that run those big funds or have tons of money or whatnot they have so much money to invest that they can only invest in certain companies which is another reason why warren buffett’s returns have gone down as he’s got older and older even though he may be

More intelligent may have more wisdom those kinds of things but his returns have gone down because he has to invest so much money into one company that he has a very small amount of companies he can even invest into that would even be worth his time because there’s only so many companies that are that big that you can invest hundreds of millions if not billions

Of dollars into where is us as small investors you know regular people we can invest in any company literally any company because we’re investing thousands of dollars out of time maybe tens of thousands dollars maybe even hundreds of thousands of dollars which is still super small amounts when you talk about the stock market that’s now you’re going to move most

Stocks so our gamut of companies we can invest in is so much wider than theirs another reason why this is a huge myth is because when you’re a regular person you more likely do regular people things you’re more likely to be intelligent as far as consumer goes in those kinds of things if you’re one of those people running on those huge headphones you have tons of

Money you’re in you’re in like a separate class and you’re like in that little bubble of eating $100 steak dinners and only doing things that the super rich people do that sometimes you don’t even know what the trends are unless you see a paper or a report or something you have no clue you don’t know about this stuff until it’s already been published in the paper

And it’s already been publishing graphs and all these things whereas if you’re a normal person you know trends you can see you know all that restaurant chains doing really well because every time i go there and every tuesday with my family they’re packed you know that’s it that’s a good company you know we can see trends before they can see trends because like i

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Said they’re just in their own little bubble they’re in their own little world they drive their kind of cars they you know they live in their kind of houses and their kind of communities which is totally different than what a regular person is doing so you have a huge advantage there that you can see things way before they ever get to see them as far as trends go

And all those kinds of things guys those reasons are why that number one myth the is the biggest myth by far you have actually an advantage over big fund managers number two you can’t become a millionaire from the stock market this is absolutely a myth this is absolutely a myth guys we broke down the chart last week in the video i did which was called how fast or

Something like how fast would it take you to get become a millionaire in the stock market and basically the chart was we would assume we put in 10,000 the very first initial investment and we put in ten thousand dollars a year and it was something like after 25 or 30 years or something like that you’re a millionaire you had over a million dollars just in the stock

Market and that was getting only an average return so that was assuming you did the ten thousand dollar initial investment you had ten thousand dollars a year per year into that account which is which is a realistic estimate for most people and then assuming that you only get an average return and you still reach millionaire status with by you know time you’re

45 50 years old if you start in your early 20s so that whole myth about you can’t become a millionaire stock market it cannot be further from the truth and then imagine if we amped those numbers up when we said okay so 10,000 a year we’ll put 20,000 a year instead of an 8% return we think we’re going to do better than the market so we’re going at a 12% return or

Something like that guys you know those nose numbers would have changed drastically it might have been 10 or 15 years till you reach millionaire status so that is absolutely a monster math guys you can absolutely become a millionaire the stock market you got to minimize losses and you got to do at least as good as a market does each year or a little bit better and

You got a funnel money into that account and you will definitely become a millionaire in a lot faster than you think number three you need a high iq to be a good investor you need to be really smart to be a good investor once again it could not be further from the truth guys investing is two things one an iq can help you on the financial side you have to understand

Income statements balance sheet cash flows you got to be able to read through companies and if you have a little higher iq it can help you as far as reading through companies and retaining information but that’s only half the that’s what we have two problem guys so number two what’s the other part of it making a gut decision making a gut decision guys that that

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Business you’re going to your getting into is going to grow in the future you believe in their management making gut decisions making business decisions guys that’s what business is that’s why i preach entrepreneur on this channel because it will help you a lot in the stock market understand that because you’ve got to realize a lot of investing decisions they’re

Business decisions at the end of the day they are gut decisions that you have to make and sometimes they’re not made with your brain half of it’s made with your brain you got to understand income statement you have to understand balance sheets you’ve got to be real to read through risk factors and remember those and retain those and all these different types of

Information and whatnot but also you’ll need a high iq to make great gut decisions a person that has a 90 iq versus someone has a 110 just because that 90 is a 90 i don’t wouldn’t say they’re worse investor they might actually be a better investor sometimes than the person with the high iq because a person with the high iq might just bank on oh i understand these

Financials and this makes this makes financial sense this makes paperwork sense but maybe that business is actually going about to become a declining business maybe it’s going to have define business model those the type of things that numbers don’t sometimes say so guys high iq it means nothing in this game it means absolutely nothing don’t forget that number

Four some people come in the stock market and sometimes when they’re around other people that are making money in the stock market they come in and they think it’s gonna be super easy literally some people come into the stock market and if they’re around people are making money that’s so easy just put some money in a stock oh my gosh it’s so easy you make you know

Thousand dollars today oh you made ten thousand dollars last week it’s so easy absolutely not absolutely a myth a 100 percent it is not easy you need to do the work you need to read through the annual reports you need to google the news you need to keep track of the company here and there you need to look through tons of other companies so when that company if

You’re in becomes overvalued which at some point in may you need to get out of that and get into another company that’s undervalued so it’s a lot of work guys it’s no doubt about it it’s it’s certainly not like overwhelming amount of work but if you think it’s just easy to make an 8% 10% 15% return per year absolutely not it’s not easy it does take work it does

Take a worth work ethic and all those kinds of things guys so it’s not easy that’s a huge myth that some people come across generally ones that are around people that are making money in the stock market just like ok if you watch olympics right and you see michael phelps up there swimming a lot of people are like wow how easy is that man you know swimming around

A pool does he look like he’s going that fast if i practice at that for a couple years i would be in the olympics too yeah and then you race michael felker you realize it’s not that easy guys so generally from the outside it looks easy and then you actually experience it and you’re like this is kind of harder making money in the stock market than i anticipated

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Number five there’s another myth that if you want to be a great investor you need to focus on it two full time so you need to quit your job or doing what you’re doing because that being all just paying attention all day long every day that should work that’s your job that’s going to help you become a better investor this is absolutely false i’m living proof that

This is a false premise i thought this guy’s i really thought this i did like 30 to 40 percent per year for four or five years straight that was while i was working full-time 50 hours per week for a company then then i decided i was going to leave that company i was like man i’m getting 30 40 percent a year and i’m working my ass off doing a job for someone else

I need to just retire from that and you focus full-time and investing well what happened as i realized actually got worse and as an investor i got much worse i got i became a horrible investor i lost a lot of money because what happened is i had a lot more free time on my hands watching stock prices all day and suddenly i became became like an urge to trade more

Often like getting out of stocks more often focus more on margin i got no margin accounts those kinds of things guys so just because you have more time on your hands doesn’t mean you’re going to become a better investor like i said with me i became a much worse investor because i was focusing so much on day to day stock prices and needing to make moves oh i should

Probably trade today because you know i haven’t traded all week and you know i need to do something i need to make some money somehow and because my stocks didn’t go up this week so you know i’ll try to do a short-term trade here and there and it became a worse investor guys so you do not need full time you know you can just do it at night you know spend an hour

To that you might be vegging out on tv or veteran out on doing whatever you usually do you spend that hour to extra at night focusing on companies on the weekends instead of just pulling weeds all weekend and cutting the grass or whatever spend an hour to on your ipad or your mac or whatever and kind of research some companies that’s what’s necessary guys spend a

Few hours a week trying to research companies and that will get you to the promised land as long as you do a good job and you have a good gut instinct you’re a smart business person you’ll make the right decisions and you will make money over time i hope this how it helped you guys immensely today and understanding the five biggest myths of stock market investing

If you’re watching this today you have not subscribed you may want to talk about personal finance in the channel talk about entrepreneurship i’m an entrepreneur and i get entrepreneur tips on this channel and we talk the stock market so many times each week thank you for watching guys and have a great day

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Top 5 Biggest Myths about Stock Market Investing! By Financial Education

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