2. True And False In Investment
Not all investments provide good return. Investment is not a certain
matter. There are external factors which influence investments' return.
However there are true and false in investment.
The following are the falsehoods as well as the truths.
1. The first falsehood: there are many investment companies offering and promising a definite return.
That's a lie. Sales or marketing people are usually persuade us to join their investment programs, or buy the company products in order to achieve their sales target. Investment will not guarantee a definite return even if you deposited your money in a bank. Since the inflation rate is higher than its interest rate you earn.
All investment products are risky as well as banking products. If you had saving deposit in a bank
and the bank collapses, who will reimburse you for the money? Sometimes the government is not literally guarantee the bank clients. So there is no investment with a definite return.
The truth is: investment complies with certain rule, that is risk to return ratio. It means that the higher your return the higher your risk is. Higher return necessarily entails greater risk. If an investment is low risk and so is the return. But there is also a high risk low return investment that you need not to follow.
The following are the falsehoods as well as the truths.
1. The first falsehood: there are many investment companies offering and promising a definite return.
That's a lie. Sales or marketing people are usually persuade us to join their investment programs, or buy the company products in order to achieve their sales target. Investment will not guarantee a definite return even if you deposited your money in a bank. Since the inflation rate is higher than its interest rate you earn.
All investment products are risky as well as banking products. If you had saving deposit in a bank
and the bank collapses, who will reimburse you for the money? Sometimes the government is not literally guarantee the bank clients. So there is no investment with a definite return.
The truth is: investment complies with certain rule, that is risk to return ratio. It means that the higher your return the higher your risk is. Higher return necessarily entails greater risk. If an investment is low risk and so is the return. But there is also a high risk low return investment that you need not to follow.
2. The second falsehood: investment is suitable for rich people.
It is true, 10 years ago, when financial business wasn’t establish yet. But today it is different.
That is because many people lack enough knowledge about investment. We should supply them
with information that financial business is growing well.
The truth is: financial business nowadays is opened up to retail investors, and this is as small as your initial saving deposit in a bank. In the past, forex market participants were central banks and big players and it needed a relative large initial deposit to start trading.
3. The third falsehood: investment is suitable for high educated and genius people because of its complexity.
That is not true. Investment procedure is not as formal as job application procedure. You don’t
have to attach your diploma when you open an account, and you should not be a high educated person either. Many of our clients are housewives and students.
The truth is: you could ask a fund manager to handle your account so you will make money in the market passively, without the aggravation of day to day trading. But if you loved to trade your own account and didn't mind sitting in front of computer screen every day, you need to know all about market analysis, money management, and trading psychology.
4. The fourth falsehood: it is difficult to open a trading account in outlying district.
That is true 30 years ago, when information and telecommunication technologies were not as established as today. The world is now connected with internet network, which allows an outlying and remote place to communicate online all over the world. It may be a little bit difficult to deal with real sector investment, but not for the financial business.
The truth is: it is very easy to participate in financial business anywhere you live. You just
make sure for the internet network, telephone line, and bank in your location. Afterward, you can choose a well regulated broker. It is important that you carefully look into each broker before choosing the one, which best suits your needs. You can register and communicate with your broker by email.
Sumber: Seputarforex.com
