When starting a financial career everyone comes across many myths that are prevailing in society forever. These myths are barely true and are more circumstantial. It entirely depends on the market condition at a current situation rather than certain myths to tell you what is certain to give profit or loss.
1. THERE IS NO MARKET THAT NEVER FALLS
Myths are generated about some companies that their shares never fall or getting a partnership somewhere will always give a profit. People invest blindly into it without analyzing the market condition of the time. These myths sometimes cost a lot than disappointment.
2. POOR PERFORMANCE IN THE PAST
Similar to the first one, some myths say where a business suffered one time it will not rise up again. This leads people to take out their money or can cause hesitation in investing. The truth many companies deal with adversity and rise above it.
3. HIGH GRADES ENSURE HIGH JOB
Most of the finance students believe in the ever common myth that says get high grades get the perfect future job. Students believe it and work hard on grades ignoring the practical aspect of the work whereas many banks and financial institutions require more confidence and practical skills to accompany the high marks.
4. GOLD IS THE BEST INVESTMENT
Buying metals is considered the best way to invest as its price over time increases that earns you profit without fatigue, but this is not always the case for short time investments. Gold’s price is constantly changing so, no time is said to be the best to invest. You have to observe the rise and fall in prices and purchase at low rates sell at higher.
5. PUT MONEY IN REAL ESTATE
It is generally believed that real estate is the best place to invest money but this myth is seen busted. People with a less knowledge of real state can suffer great loss in the business as they might pay lot for less.
6. MASSIVE SALES MEAN RISING BUSINESS
The common myth about massive sales is related to rising future of the company but you need to check all of the resources assets and fund before buying shares. It may be just a product fad that resulted in such huge sale.
7. ANNUAL REVENUE
People invest by taking a look at the at time performance of the company that is entirely wrong. One needs to look over the average annual revenue of the company to make sure a sound investment.
8. MAKING THE DOLLARS
Dollar is considered the standard currency so people prefer payment in dollars that it might give profit in case of a fall of the local currency but it is not always the case.
9. INSURANCE ISN’T GOOD ENOUGH
Coming to investment, people over look the importance of insurance, but in actual to pay minimal for later betterment is the best financial investment.
10. FOLLOWING THE TREND
A general myth here follows the crowd as a large number of people are showing interest in a policy it might be good. Actually people may also be going after a fraud scheme.
First investigate, and then invest. Do not follow myths as these are meant to be busted by circumstances.