Do You Buy Stock Market Claims?
Most mutual fund / personal finance guys will tell you that to buy stocks returns somewhere between 8% and 11% annually. A quick google will find you people claiming to earn 20k per month or 100% per week. With all these potential ways to get rich shouldn’t everyone be wealthy?
Buy Stock Market Claims – Get Poor Fast
What we want to show you is how to think for yourself. I can’t definitively state that any of these systems don’t work, however if you choose to pay for one I want you to be able to think through the logic first.
Do you buy stock market claim #1? – The Stock Market Returns X% Per Year
This number can be tweaked depending on the time-frame you look at the market. Over the really long term it floats somewhere around 8%, on the shorter term somewhere closer to 11%. The important part to think about is recognizing this claim is an average over all the years. Some years were much much better and others significantly worse. If you have to use the money at a certain time you have to think about the risk, you can’t just plan that 8% extra money exactly 1 year after you invested.
Do you buy stock market claim #2?- I make $20,000 per week using this system.
While it is certainly possible to make this much money or more per week, so I can’t refute the claim of it being possible, they may neglect to tell you how much they have invested to make that amount. Sure I could make $20,000 per week consistently if I had $400 million to invest. In order to do it with much less money than this would require high leverage (high risk) investments. Maybe it does work, but does it work for you? Also, if they can do it consistently why would they sell the secret for a few hundred or even thousand dollars? If too many people learn a system the system has to stop working.
Do you buy stock market claim #3?- My stock trading system returns 152% per week!
Well at least this claim isn’t as deceiving as the return in dollars, however if this was true then $1 would equal 1.5 trillion in about 1.3 years. I think the world’s cash would be sucked to the lucky few investors.
Please, don’t get caught in the hype and use your money wisely. You can get wealthy in the stock market, but do it creatively and safely.
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