There are many common misconceptions that the media is always pumping to the uninformed, novice investor and we want you to know the real deal.
The top 3 are unquestionably:
Common Misconception: Penny stocks will make you rich!
Truth: Penny stocks are dog shit.
Penny stocks are inherently riskier than real companies who report earnings every quarter and have the SEC watching their every move. Everyday, hundreds of penny stocks are wiped off the face of the Earth, but you never hear about those. You hear about the stock that went from $0.12 to $3 in a week, because that’s sexy news. They don’t want to tell you that it is the norm for these stocks to lose 50% of their value overnight.
Common Misconception: The broker matters.
Truth: Your trading skills are what matters.
The most common question we answer is, “Which broker is the best?” We have traded successfully on many different platforms and we’re here to tell you that your broker won’t have anything to do with your results. Don’t get us wrong, getting your fees & costs of doing business down is important, but that is something to worry about when you’re trading thousands of shares every week, not when you’re just starting off.
Common Misconception: The market is rigged!
Truth: It's only rigged to the people who don't do the work.
Generally, people don’t want to have to work for results. They want to get rich overnight! Who doesn’t? But the fact of the matter is that this is a LONG TERM game just like anything else. Steph Curry shoots 5,000 three’s a day, no wonder he’s so good! He perfects his craft through tireless practice. The people who don’t work are the first ones to complain about their results.