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I think all readers agree that we all need to invest. The objective of the investment is quite clear: a profit. Whether only a few percent in one year up to tens or even hundreds of percent a year. However, the main goal of the investment is profit itself. If the benefit is not achieved then the investment is failed.However, is it that all the investment will provide such benefits? Of course not. In fact we are not black and white world where all things clearly visible, such as the theory taught in the book. We are more in the grey colored world where it is often that external factors can cause shock in our investment.
Here are some fact and lie in investing. Furthermore, I will discuss the fiction/lies, and then I will end it with the truth:
1. First lie: There are some kind of investments that always profitable.
This is usually a big lie spread by non ethical-investment companies' marketing to purse as many funds/customers as possible to go to their company.
Please note that no investment can be guaranteed profitable. Not even the savings (which this actually is not classified as investment because increased fee that is usually greater than the interest itself) or bank deposits.
All investments have risks. Including the banking products that only have small interest. What if the bank where you put your funds on is bankrupt, then at the same time your funds are not guaranteed the local authority? Of course it can happen. So you know that there is no 100% certainty when you decide to invest.
Truth: Usually, the investment risks are compared to its profitability. This means the bigger profits earned, the greater risks that might occur. And vice versa. If you choose a low investment risk, the return offered are also limited. Although there is also the investment is a bit incompetent (which is not recommended to be followed), namely the high risk-low return.
2. Second lie: investment is only for rich people.
This statement is true but 10 years ago. At that time of investment, especially where the financial sector is still a novelty in society. But not with investment in the financial sector today. This is due to lack of knowledge in the general community about the investment. In fact, from time to time the investment is always evolving and increasingly popular in the community. It is us that should be studied consecutively.
Truth: there were some retail investment which is almost have the same amount of funds needed for saving in the bank.In fact, forex trading which was known as investment instruments for the super rich guys is no longer so because it was started to become very retail. You just need small amount of fund to start investing.
3. Third lie: Investment only for the experienced or smart one and also difficult to learn.
No. Thats not true at all. Even otherwise, the investment is not like applying for jobs and need a variety of academic and experience requirements to be accepted. No matter who you are, you can start investing and it's not as difficult as you think once you jumped in. Investment is also not just for smart people. Even students are starting to do forex trading.
Truth: In some models of investment you can submit your funds to an investment manager that can manage your funds in a professional way and you just accept profits. If you want more maximum results a longer, of course, you must step in to manage your own investment (active investors). Not as difficult as the people think. Simply understand that there are analysis instruments, fund management and the psychological effect, you can become the investment manager for yourself.
4. Fourth lie: It is difficult to invest in the financial sector, if living in the remote city.
If this is an era of 80's that might be yes. However, these days world is already connected through the Internet and global banking. Remote area indeed "a bit" isolated from the real sector. However, it does not mean the financial sector as well. Yesterday, it was isolated, but after the Internet and the phone era, you are no longer isolated. Be happy!
Truth: Then why should we think that the distance limit our investment? As long as there are banking institutions, a telephone network, and the Internet in your place, you does not need to go to the offices securities broker or another place to start investing in financial sector. First, make sure that the financial institutions where you want to invest is the official one and authorized by the local authority. Next, you just need to take care your investment through phone and email. Even foreign companies broker has already served the registration of the forex account from various countries in the world with the online registration form. Learning Forex can also be done online. So no need to feel that you lost another opportunity.
Truth: Then why should we think that the distance limit our investment? As long as there are banking institutions, a telephone network, and the Internet in your place, you does not need to go to the offices securities broker or another place to start investing in financial sector. First, make sure that the financial institutions where you want to invest is the official one and authorized by the local authority. Next, you just need to take care your investment through phone and email. Even foreign companies broker has already served the registration of the forex account from various countries in the world with the online registration form. Learning Forex can also be done online. So no need to feel that you lost another opportunity.
