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.
