Welcome to the world of investing in the stock market. You are about to join the ranks of a
very elite group of people, namely those who have decided to actively manage their own
money and make it work for them. This is a big step, and not one that should be taken
without sufficient preparation. Before beginning with the more technical aspects of investing
in the stock market, then, you should first ensure you have dealt with any mitigating
circumstances that might otherwise distract you.
TIP
Many outside factors, such as lack of cash and preexisting fears, may affect your
investment abilities and decisions. Learn about your fears before attempting to
invest.
The most obvious confounding circumstance would be lack of cash with which to invest. The
effects of this situation would probably be limited, however, to a lack of opportunity for profit.
Also significant would be a lack of understanding of how stocks compare with other
investments. That is explained here sufficiently to neutralize that fear.
More insidious, however, are the preexisting fears many people bring with them. These fears
can affect investment decisions up to and including the decision whether to invest at all. Here
are some common ones:
Fear of technical-ese
Fear that your financial knowledge is insufficient
Fear that investing is only for millionaires
Fear of stock market crashes
Fear that investing in the stock market is a gamble
Fear that investing is too time-consuming
Because these fears have the potential for damage, it's best to meet them head on. Face
your fears of the stock market directly by learning the truths behind erroneous information
you may have heard. You will then be able to place any reservations you may have had in
their proper perspectives.
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