What do we Fear most in the Stockmarket?
One very common statement I hear from people about the stockmarket is that it is too risky. We hear many Stockmarket Fears and Myths in society. For instance, what is too risky?
Warren Buffet once said: “Risk is Not Knowing what you are doing”
What he meant was this: When people know what they are doing, they have good results. When they are uneducated about it, they have poor results.
Look at this analogy:
You can send your 5 year old child on his bike onto the highway and call it very risky. However, when you ride your bike on the same highway, you might perceive the risk a bit different. I dare say you will call it a low risk. You might have 20 - 30 years of bike riding experience. You would even consider a 20 year old a low risk on the highway, even though the experience level isn’t all that great.
So how come the very same highway is low risk to some and high risk to others? Well, it’s simply isn’t it? Different levels of experience and education.
Then why do people generalize about the stockmarket and say it is too risky? Aren’t they just saying that it is too risky for them because they know little or nothing about it? I don’t think I’m going out on a limb here.
So we can’t really tell people that the stockmarket is risky. We need to say the stock market is risky to the uneducated person. Just like anything else in life.
This is what I have done to remove the risk from my dealings in the stock market:
I’ve educated myself about it.
I’ve read books, taken educational programs, gotten involved in forums and generally growing my knowledge in an area I know is benefiting me and future generations of my family. Not to mention charities that now enjoy donations from me.
Are you educating yourself about the stock market?
Of course this is only a good idea if it appeals to you earning an income from this kind of investing. My ebook: The Bullhunters Guide to the US Stock Market won’t help you make money in a great hurry. What it does is explain simple things in the DOW JONES index that you can build upon with more advanced investment knowledge.
The next edition will take things much further. Hopefully you will be able to understand the concepts of Renting Shares and being a Sharelord ® along with plenty of other stock exchange concepts.
Please post any questions in the comments section below. Was this article of any help to you?
Regards
Sean Rasmussen
Universal Wealth Creation © 2004 - 2007
