Let's Leave These 3 Stock Market Myths Behind in 2020
People love to share stock market myths disguised as wisdom about the best investing strategies. Good investors will instead focus on tried-and-true portfolio allocation principles to make sure that they maximize long-term returns. Recognizing the flaws in these three stock market myths can help you manage risks and dodge common pitfalls.
Most people have heard that they should "buy low, sell high." That much might seem obvious, but the actual implementation of this strategy is an entire additional layer of difficulty. A complicated and necessary step is identifying stocks with attractive prices and the potential for growth. This is the keystone of value investing, which involves either buying stocks that trade at a discount to their intrinsic value or finding stocks with attractive valuation ratios relative to peers. That's a time-consuming challenge at the very minimum, and it could be impossible for investors who are not financial professionals.
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Source Fool.com
