Page 27 - Waterfall City Issue 4 April 2024

complete myth in practice, as nobody playground for investment banks, asset among those who have yet to start
truly knows exactly what the market is managers and ultra-high-net-worth investing in the stock market. This
going to do. Research shows that the clients, but this is certainly not the case. inexperienced viewpoint says you just
cost of waiting for the perfect moment need to buy when the price is low and
to invest typically exceeds the benefit. During the 1990s, the Internet opened wait to sell it when it reaches a higher
the market up to retail investors, and price. Even experienced investors
Therefore, the best strategy is not to retail brokerage houses provided cost- battle with this, however, and
try and time the market but to define effective market access that made it deciding when to sell is challenging,
your investment plan and invest as easier for these investors to invest in even if you find a stock at a low price.
soon as possible. If you don’t have the the stock market.
opportunity to invest your funds all Myth #5: The younger you
at once or feel the risk of doing so is The best way to start investing in are, the more risk you can
too high, consider investing smaller the stock market is to contribute take
amounts more frequently. Sticking monthly to a retirement plan. Your Younger investors tend to think
to this approach can offer several financial adviser can help you open a about taking high risks to make
benefits, including: retirement annuity, which is effectively extraordinary profits. Although
• rand-cost averaging, a personal retirement product. younger investors have longer
• preventing procrastination, Shares are typically one of the main investment time horizons, one should
• minimising regret, and underlying asset classes making up a not fall for highly risky investments in
• avoiding market timing. retirement annuity. pursuit of high profits.

Myth #3: You need a lot of Myth #4: Buy low, sell high Warren Buffett’s two investment rules:
money to start investing This myth is linked to the idea of • Rule No.1: Never lose money.
There is a prevalent perception that timing the market and is one of the • Rule No.2: Never forget about Rule
investing in the stock market is a most common investment myths No.1.

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