Being afraid to invest is a common fear. If this is plaguing you, don’t worry. Many others know this feeling. I know this feeling. I’ve had it myself.
I was able to overcome this fear, and I’d like to share that with you. There were several things that helped me get started. Buying my first stock was one of these. I’ve talked about this before.
But there was something I did before even buying my first stock. Another stepping stone along the path, if you will. It’s a simple thing to do, and you can even get started now.
Afraid to Invest: What to Do?
Try Paper Trading
Sounds highly sophisticated right? It’s actually not. Paper trading is simply trading with pretend money and keeping track of it on a piece of paper.
Doing this is beneficial in many ways. #1- you don’t risk losing any money. #2- you get the feeling of being involved in the market. #3- you have an incentive to track and follow the market. #4- you can quickly learn from mistakes and bad assumptions.
This will lead to you learning about the stock market faster than any other way.
In fact, did you know there are actual statistics on how much you learn? Yes it’s true. The numbers are roughly like this:
Afraid to Invest: Learning Statistics
20% of What you Read
30% of What you Hear
50% of What you See and Hear
80% of What you Do
The best way to learn is by doing. It’s hands down, undoubtably, the best way to learn. Your brain can only retain so much, why fight against its tendencies?
This is exactly why I’m always pushing you to take action. Because no matter how great of a writer I am, or how great of a reader you are, you will only learn a fraction of what I’m trying to tell you!
You need to get started and take action with something, now. Take my 90 Days to Riches challenge, which is really just a 30-minute action plan with a 90 day follow up.
[Access to 90 Days to Riches available to subscribers]
Action will frequently lead to more action. Sir Newton said it best when he said that objects in motion tend to stay in motion. Your actions and motions are the only things that will lead you to success, and wealth.
So take what you’ve learned, or what little bit you’ve learned, and start paper trading today. Just get out a piece of paper, try to do some honest analysis on some companies… it doesn’t matter how basic it is.
Track a few companies, write them down, check their stock prices. Use a fake trailing stop, and have it track the companies you’ve “bought”. Do this, and do it repeatedly.
You may be afraid to invest. But you may find that it isn’t that hard after all.
Our country has an enormous amount of wealth. We are so fortunate to be a part of the prosperity. Companies in this country are continually growing, and do a great job at doing that. This leads to generally rising stock prices.
Why should you miss out?
**All Rights Reserved. Investing for Beginners 2013**
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**Afraid to Invest: What to Do – Wisdom Wednesday #46**