The Big Secret Wall Street Will Never Tell You About Investing
Investors can learn valuable lessons from Wall Street, but the pros aren't always eager to reveal their secrets. Luckily, there is one common stock market misconception that's not too difficult to rectify -- and it happens to be connected to some of the most costly mistakes that retail investors make. Keep this "secret" in mind as you create and execute your investment strategy.
We have an obsession with investment returns that seems deep-rooted in our psychology and society. Market headlines often grab attention with noteworthy gains and losses for indexes and individual stocks. The first big question financial advisors field from prospective clients usually involves historical returns. Casual conversations on the golf course or at cocktail parties often center on recent investment wins and losses.
None of this is really surprising. Investing is enticing because it allows us to take money and turn it into even more money. Returns are also an intuitive way to quantify performance, which resonates with people who like to keep score. Nonetheless, the hyperfocus on growth is one of the distinct advantages that Wall Street holds over the average investor.
Source Fool.com
