Not all investments provide profits. As what has been explained in the investment structure article, forex trading is one of the riskiest investments. So, besides the possibility of profit, there’s a possibility of loss in forex trading. In fact, we are not in the black and white area where everything looks clear like the theory taught in a textbook. We are more in a gray world where often external factors can cause shocks to our investment.
Here are some lies and truths in investing. To be more interesting, I will discuss the lies first then finally end with the truth.
What is Certain in Investing?
The First Lie: There are types of investments that are definitely profitable if we join
This is a big lie which usually exhaled by unethical marketing practice from some investment companies to pursue a large number of funds to come to their company.
Please note that there is no investment that can guarantee you a profit when you invest in. Not even savings (this is actually no longer an investment because the price increases are usually greater than the savings interest) or bank deposits.
All investments have risks, including banking products that are actually with small interest. What if the bank where you invest your money go bankrupt while the funds are not guaranteed by the central government? Of course, that may happen. So, take into account that there is no 100% certainty of profit when you decide to invest.
The Truth: Usually, the investment follows a standard comparison of risk to its profitability. This means that the greater the profit you may obtain, the greater the risk that might occur. Conversely, if you choose an investment that is low risk, then the return that you may gain is also low. Although there are some types of investments that are a bit ridiculous (which are not recommended to get into) which are high risk with low return.
Who Fits to Invest?
The Second Lie: Investment is only for rich people.
This statement was true 10 years ago when the times that investments, especially the financial sector, are still new in the community. But this is not the case with investments in the financial sector today.
This is due to a lack of investment knowledge in the general public. Not to mention the image that has been formed for many years before has made financial investments labeled as such. Whereas from time to time, investments are always evolving and increasingly popular in the community. We are the ones who need to learn.
The Truth: Some types of investments are very retail-listed and almost the same as saving money which only requires a few tens of dollars. In the point of fact, forex trading which was once known as an investment instrument for super-rich people is no longer now the case because it has become very retail. Compare today’s advantages of forex trading with 10 years ago where the minimum funds must be $ 10,000.
Is Investment Only for Educated People?
The Third Lie: Investment is only for educated people because it is difficult and meticulous.
No, it’s not true at all. On the contrary, investment is not like applying for a job that requires various academic requirements and experiences to be hired. Whoever you are, you can start investing and don’t make it difficult. Investment is also not only for smart people. Even housewives and students can now start investing.
The truth: In some investment models you can submit your funds to an investment manager who can manage your funds professionally and you just have to accept the results. If you want more maximum results, of course, you have to intervene to manage it yourself (active investors). Investment isn’t as difficult as most people imagine. Simply understand the existing analysis instruments, financial arrangements, and psychological effects, you then can become an investment manager for yourself.
Is Investment Difficult?
The Fourth Lie: It is difficult to invest in the financial sector if you live in a remote city.
That statement was true in the 80s. But today, remote areas and national borders are no longer an obstruction in investing. The world has been connected to the internet and global banking networks. Do you believe that even this article was made by the author only through a computer while sitting on a home’s garden’s gazebo? With a comfort at home, this topic has been enjoyed by thousands of people everywhere. Indeed remote areas are a bit isolated for the real sector. But that doesn’t mean the financial sector too.
The Truth: So, why should we think that distance limits our investment? As long as there is a banking institution in your place and you have a telephone network and even the internet, to invest in the financial sector is no longer needs to go to a brokerage office or securities where you invest. Only, make sure the office where you want to invest is official and has local government permits (not necessarily in your home country). The rest, take care of it by telephone and email! Even foreign brokerage companies have been serving traders from various countries in the world to open forex accounts by providing an online registration form. You can also learn forex trading online. So there is no need to feel lost opportunity!