Truth that Investment World Never Tells You

Post Written by Sherin Dev; Follow me on TwitterYou may have excellent knowledge in investments and financial planning. You may succeed with all of your investments. But, there are some hidden truths you need to know which none of them from the investment world going to tell you. What are those truths? This article reveals these truths for you. Whether you are a beginner or experienced, should keep in mind to get succeed.

An investor never become rich very shortly

Do you think investment is the best way to get rich fast? It is just a myth. If someone, whether he is your friend, colleague, broker or anyone else, tells you once it is possible, run away to escape from those guys and never look back again. Investment is not for those who are looking to be rich in the next day, next week, next month or next year. An investor should build patience as the first quality. Investment requires time to grow. Writing a big truth about money would be ideal to understand this idea in depth. Fast money never sustains with anyone, but it would go fast as it comes. If any person wants to become rich in an overnight, better he should avoid investments and look for some other ways. Investment is not lottery to make people rich in a overnight.

Tipsters are barking dogs; their eyes are always on profit

Investment world filled with self acted analysts, investment gurus and tipsters. They could send research reports frequently to the people (they generally don’t keep any list, but would send to all those available in the market) with their findings of best stocks available to buy or sell. They are good to support their claims using convincing sentences. Many, many, many times I have written about this trap in this blog. I consider tipsters just as barking dog, they seldom bite. Most of them works only for own profits which makes from the ignorance of innocents. They don’t have any intention other than making money. This will make innocent investors as a victim. No one in the investment world tells you about the authenticity of such reports and the trap behind it. Remember, there are very few good analysts available with right ethics but, it is a difficult task to identify them.

Brokers treat you like king if you frequently trade with them

Brokers are one the major community in the investment world. They would treat you as a king and ready to serve you once if you trade with then frequently. They never take care of other customers who not frequently trade with them. Brokers get heavy commission only when people trade with them frequently. This is the major reason brokers always suggest short term trading. Their biggest enemies are long term investors, especially, value investors.

Tax plays crucial role

How many of you are aware about the biggest disadvantage of frequent trades? That is tax. Whenever you trade, you are liable to pay tax for each transaction you do, whether it is giving a profit or lost to you. Tax amount generally less, but it could grow as a sea for the one who trade frequently! Whenever deals with stock market, investors should have better awareness on how tax implications affect them. This would change depends on your nation and laws. Tax considers as a hidden hole in your money bag which able to throw your wealth out little by little. In another word, it can consider as slow poison!

Investment is the only world where laziness pay you money

Totally different isn’t it? But, yes, investment world really pays you for your laziness better than any others can. Good value investor, who buys stocks with proper research and study and for long term, ensures he is building wealth whenever he is inactive or sleeping. There are number of examples available in the real world and Warren Buffet is the top among them. It reveals another truth about money, money always required time to grow!

Image courtesy: mikebaird