True/False - Common Myths About the Stock Market - Myth #1

 

In the past 12 years of investing and trading in the stock market, I have learned a lot from my conversations with other women. For one, I have discovered many misconceptions about the stock market. In the interest of personal growth, I am open to learning new things. So, once I’ve discovered that what I used to think about a particular topic is based on insufficient information, I find myself opening up to a new perspective.

So, how do some women allow their mind to take them out of the financial game? Well, while our mind can be extremely powerful, its desire for security and resistance to change can also keep us from stepping out of the box to accomplish our goals and dreams.

Stock Market Myth #1
Trading or investing in the stock market is like gambling.

Some ladies believe that trading in the stock market is like gambling. Truth be told, trading in the stock market is only like gambling when you don’t use a systematic approach. So for many women, I am sad to say, it is not merely “like” gambling…it IS gambling. Only this time, your retirement or family’s future is at risk, not just the cab fare to take you from the casino back to your hotel in Vegas.

This used to be the case for me when I had very little knowledge about the stock market and all I had was my 401k. My investment decisions were based on my emotions or even worse, someone else’s expertise without understanding their methods for selecting stocks. It can be difficult to understand someone else’s methods especially when they don’t use any. You’re better off opening up the financial section of a newspaper, closing your eyes, and pointing your finger at the page.

Now that I trade and invest based on a systematic approach, the odds are definitely in my favor that I will be profitable and continue to be into the future. And for those of you who don’t want to trade, but still want to be able to monitor the funds you select in your 401k or IRA investments, then there is a systematic approach that can work for you too.

Comments

[tturner]

Great article. It's true. Women should be more proactive when it comes to money. It is time that women get off the sidelines.

[Aneshia]

Hi tturner. Thanks for your comments. It certainly is wise to be proactive about your financial investments. After all, it is your future. Too much delegation can be detrimental.

[Dr Wright]

This is a great way to look at it. We have to take charge. Lots of people have financial fatigue. They are tired of looking after their money when things are not doing well. We have to be strong and keep moving forward to improve ourselves. I look forward to getting back into the market.
Thanks for being there with your professional training.

Dr. Wright
The Wright Place TV show
http://www.wrightplacetv.com

[Aneshia]

Hi Dr. Wright, Thanks for your comments. I agree wholeheartedly. It does take commitment to manage your investments and your finances. Sometimes I wish there were an easier solution, but on the flip side, I've grown alot based on what I have learned over the past 12 years.

[Mary Anderson]

This all sounds great ... but I was never good at math and get confused easily. I am now retired and hope to "get out of my comfort zone". Maybe my mind is clearer and I am ready to grow some money. What does it take to get started as I don't have much available to me?

[Aneshia]

Hi Mary, Thanks so much for your comments. I understand your concerns. In fact, many women have expressed similar concerns about their math skills. Please check out my post today, which I hope addresses your math portion of your question. To address the other part of your question, the money necessary to get started depends on whether you are investing through a 401k or a self-directed brokerage account. Since you are retired, it sounds like you would be investing through a self-directed brokerage account. In that case, I strongly recommend starting with at least $1000. The ideal financial start is $2000, because it gives you even more flexibility. I hope this answers your question. For the ladies still in the workforce, I will talk more at a later date on the system I use for money management to raise your investment capital up to $1000 or even $2000 and beyond. All the best to you! Aneshia

[Viviane Lincoln]

Hi Aneshia
I am brazilian. I have been living in Atlanta since last year. I graduated as civil engineer in 2000. However I always wish working with stock market but I don't know anything about it. Could you send me information about your course?Thank you for your attention.Viviane

[Aneshia]

Hi Viviane, Thanks so much for your comments. Since you are living in Atlanta, you have three different options. They are the The Women of Wealth Stock Market Mixer,
The Women of Wealth Stock Market Webinar, and The Women of Wealth Stock Market Retreat. Please click on the links underneath Women of Wealth Gatherings to take you to the course details. Have a wonderful day! Aneshia

[online stock market]

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Hello Online Stock Market, What is your criteria for determining the best stocks to watch?

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[Aneshia]

Thanks for your comment. I build my watchlist of companies from the Investors Business Daily (IBD) newspaper. I start with their ranking system. I then use another tool to help filter out companies that have poor fundamentals. Hope this helps!

[nifty option]

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[Aneshia]

Hi "Nifty Option" Thanks for your comments! I am glad that you are getting a lot out of my blog. Let me know if you've got questions about the content.

[Aneshia]

Hi "Invest in the stock market" I appreciate your comments. You are right on about the risk present in the stock market. That is why education is so important. You can never eliminate the risk from the market, but you can manage it. If I look at my own experience, out of 10 trades, 7 of them are profitable, 2 will lose money, and 1 will break even. The key is knowing when to let the losing trades go. That is why so many people wind up losing money in the long run because they stay in a particular investment for too long. In the 7 trades that are profitable, I let my profits run, and I am not willing to lose more than 20% before I exit a losing trade. This is why I have been coming out ahead. I am not special. Others can do this too.

[Aneshia]

Hi "Share Market" Thanks for your feedback! Let me know if you have any questions about the content. My next post will be coming soon...

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[Aneshia]

Thanks for your comments, "share market tips." I use swing trading in my short-term brokerage account. When the market is bearish, sometimes I trade put options. I'm not into shorting stock for a couple of reasons. But, I definitely would not recommend this kind of risk in your retirement account. The only options I deal with in my retirement account is writing covered calls.

[Aneshia]

Great comments "globaloption review." The stock price is influenced by basic buying and selling as well. I am not sure if that is what you meant by "the current trend of trade." As with any product, excessive buying drives the price up and excessive selling drives the price down.

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[trade4target]

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