Stockmarket Fears and Myths
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
May 31st, 2007 at 1:37 pm
Please submit your questions and feedback here about the Stockmarket Fears and Myths article
May 31st, 2007 at 1:38 pm
Hi Sean,
I am just learning,can you explain(example)i have 1000 cba shares and i want to rent them out(sell a covered call)i go to my broker and he or submits the oder(ether in the money,at the money or out of the money for x umount of premium) that say costs me$70 brokerage.
What happens after the order is submited do you just sit in a waiting list for buyers to come along or is there a system that the broker has that he can find buyers for your product before or after,i gess what i am trying to understand is what is or determinds if my call or put will give me premium for the month.
could you please help me learn in simple terms,could you please e-mail me or post it on this site.
Jason
May 31st, 2007 at 1:45 pm
Hi Sean,
its taken a few weeks to read bullhunter e-book and as i am very new to the market it was the most well explained market book i have ever read, i have just read jamie’s book and ordered the home study pack and i have passed the book on to others, look forward to more information
Thank you Sean.
Jason
May 31st, 2007 at 1:45 pm
Hi Jason
It works on a supply & demand basis. There are ask & bid prices i.e how much are someone prepared to pay for the stock and how much are others prepared to sell for.
Generally, the stockbroker will get you a price somewhere in the middle. Normally you will have a contract in place over the phone.
Regards - Sean Rasmussen
Universal Wealth Creation
May 31st, 2007 at 1:45 pm
I would like to find out full information about the procedure of playing on stock market, because I always read about stock market but I don’t know how to start.
Thank you
Radu
May 31st, 2007 at 1:47 pm
Hi Sean
Thank you for emailing me your book, I have read Jamie’s book and found it very inspiring and now i have read yours. I must say that I was completely uneducated with the market until I read your book, i found it to be an extrememly usefull resource and a excellent place to take the next step in getting started.
Thank you Sean
Lynda
May 31st, 2007 at 1:48 pm
Good question Radu. Please feel free to call Sean on (08) 9791 6600 or 0437 707 947 and he can help you.
Cheers
Angela Recchia
Universal Wealth Creation
May 31st, 2007 at 1:48 pm
Hi Lynda… I know that Sean appreciates your comments. We are very excited about the Bull Hunters blog and welcome you to use all the resources available on Sean’s site at http://www.universalwealthcreation.com
Cheers
Angela Recchia
Universal Wealth Creation