The financial professionals who work at 1Wealth Tradingare committed to their belief in stock market investment as a prudent way to generate life-long income. There is plenty of historic evidence to support this view. After all, over the past century, stocks have generated consistently higher revenues than any other asset class—including property investments!
Does this mean that everyone who invests in stocks is guaranteed to become extravagantly wealthy? Not at all. While stock market investment is not an act of gambling—rather, it is a matter of carefully assessing the relative strengths of companies, and the overall tenor of the market—it is always accompanied by some risk. Moreover, there are numerous inefficiencies that can lead investors to spend too much time selecting their investments, or else to act on faulty information.
1Wealth Trading seeks to neutralize some of these problems. The 1Wealth Trading program allows investors a simple, easy, and direct way of managing their investments. Using the program takes just a few minutes each day, but in that short span of time, investors can generate income to last a lifetime.
1 Wealth is also zealous about education. The company believes that the most successful investors are the ones who not only know what they should do—but also what they should not do. To that end, the company rounds up a few of the most common myths about stock market investment, and seeks to debunk them.
Myth #1: On average, a stock should rise in value by about 10 percent in any given year.
There are a couple of comments to make about this common myth. The first is that, in some ways, it undervalues stock earnings. In truth, stocks can generate well over 10 percent earnings, on average, over a year period.
In terms of how a stock will perform in the span of a year, however, there is no rule of thumb—and no real way to make an accurate prediction. Remember that stock markets are, by their very nature, volatile. This means that it is not uncommon for a stock to gain in value by 50 percent in the span of a year—or, to diminish in value by the same amount. Anyone who pledges that your stocks will reach a certain point by years end is mistaken.
Myth #2: The best companies provide the best stocks.
It is this kind of thinking that drives investors, en masse, to buy stocks from Facebook,
Apple, and other big-name brands. It is not necessarily true, though, that a good company always offers the best stocks. It is probably fair to say that good companies tend to offer fair stocks—but in many cases, these stocks create such frenzied demand that they go for much more than they are truly worth. As such, investors are smart to avoid investing just because a company is trendy.
Myth #3: The best approach to stock market investment is to become an active trader.
Activity just for the sake of activity is something every investor should avoid. Every investment should be well thought out and made with a clear profit goal in mind. If you sell a stock and can’t find a suitable replacement, hold onto your cash until you can. You can avoid many of these issues by following alerts from programs like 1Wealth Trading, but nevertheless, it is important to avoid wasting money simply so that you can remain “active.”
Myth #4: Profits Indicate Stock Market Success
Many investors believe that a company’s profits dictate the value of that company’s stocks—and thus, that earnings can provide a good indicator of where stock values are headed. This is not entirely accurate, however, and in fact it is a bit like driving a car by only looking in the rearview mirror. Earnings show what a company has done, how successful it has proven in the past—but to get the full picture, you need to factor in a number of indicators that look ahead to the company’s future. Charting and technical analysis is a great method for garnishing an insight into the future prospects of a company’s share price.
1Wealth Trading: More Myths About Stock Market Investment
There are still further myths that many novice investors fall prey to, including each of the following.
Myth #5: A company that is down must one day come up!
This is a mistake that seasoned investors seldom make, but novices sometimes become ensnared by. They look at a company, see that it is nearing its 52-week low, and decide to buy some shares immediately—because, after all, that company’s rally is surely just around the corner! What goes down must one day come back up, they tell themselves, but of course, this is not true at all.
Remember that when you are buying stocks, you are buying a stake in a company—so what ultimately matters to you is whether it’s a successful company or not. And a company that is nearing its 52-week low point is hardly in a strong position! Yes, that company may make a comeback, but it is more accurate to assume the company is floundering.
Myth #6: Investing in stocks is basically gambling.
This is perhaps the most dangerous myth of all—because if you believe that investing in stocks is tantamount to rolling the dice or playing the slots, you are surely going to approach it recklessly and irresponsibly. The truth is, investing in stocks is not merely a gamble. While there is always risk involved,the prudent investor only makes investments that are well thought-out, educated, and researched.
Remember, then, to always do your due diligence. Read a company’s financial reports, pay attention to market trends, and make note of which industries are favorable and which are not. Above all else, remember that no stock is guaranteed, but that taking the time to learn about different companies prevents you from making blind gambles or acting on mere hunches!
What Every Investor Should Know
The bottom line is that investing in stocks is a great way to generate income—and while it is not guaranteed, there are steps every investor can take to improve his or her performance. One step is simply to educate yourself. Another is to look into the trading program offered by 1Wealth Trading. 1Wealth Trading is devoted to helping investors earn long-term income—in just a few minutes each day.
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I always knew you could make big money on the stock market but I was scared it might be too bigger risk. The fact 1Wealth had such consistent returns is what appealed to me. Since joining I have been making an excellent income with very little work. Such a clever system and definitely makes trading the market very easy.