Kevin Murray • Murray Financial Services

6 Powerful Investing Myths

(You Really Don't Want to Fall For)


How do you make investment decisions?

Do you look at all the data? Search for an interesting opportunity?

Surprisingly, most folks don’t look at the facts or data to make these choices. They prefer a good story.1

Maybe it’s not so surprising.

A good story can worm its way into our subconscious faster than any facts can. That’s because research shows good stories appeal to our emotions and our values.2

They help make sense of the world, and they can be a powerful learning tool at any age.3

But that doesn’t always make stories a good foundation for investment decisions.


Because the stories we tell ourselves can cloud the facts.1

And if those stories are rooted in common myths about investing, anyone — even the smartest folks — can have a much harder time making sound investment decisions.

So, what stories could be interfering with your financial choices?

What investing myths could be misleading you or holding you back?

Let’s find out by looking at some common investing myths, how they can cost you, and what the facts really are.

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Break Through These Damaging Myths

Plant Left

Investment Myth 1

Plant Right

Cash is Always Safer than Stocks

Myth: The markets are volatile, and you lose in the long run. It's better and safer to keep cash and invest in savings, instead of buying stocks.

Fact: Markets do fluctuate. But, since 2009, the S&P 500 has seen average gains of about 15% annually (and it's risen more than 70% of the time over the last century).4 Keeping your savings in cash means growth won't necessarily keep up with inflation. Over the long term, that could reduce the value of savings, whereas stock investments have far more potential to grow, earn, and work harder for you.

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Investment Myth 2

Plant Right

I Need $X Before Investing

Myth: I can't think about investing until I have a certain amount of money (only wealthy people can afford to invest).

Fact: If you want to invest or start building wealth for the future, you don't have to meet any financial threshold to make it happen. There are all sorts of opportunities and flexible options to fit different needs and goals.

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Investment Myth 3

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Investing in the Market is Like Gambling

Myth: The market is like a casino, and investing means I'm really just blindly "betting" on "winners" — and that I could lose it all at any second.

Fact: Although investing always involves some risk, you CAN manage risk and dial it in based on your own risk appetite. Gambling is a flashy, fast, zero-sum game — there's lots of action, and the house usually wins. Building an investment strategy based on your goals and personal circumstances is a lot more like farming.

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Investment Myth 4

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I Don't Have Time to Invest

Myth: Investing is time-consuming. I don't have time to study reports and stock screens. And I don't have time to be trading stocks hourly, daily, or weekly.

Fact: You don't need to carve out a bunch of time to invest and build your portfolio. Working with a professional means you're getting help, guidance, and the benefit of experience and professional tools.

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Investment Myth 5

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When the Market's in Trouble, It's Time to SELL

Myth: If stocks stumble, it's time to get out ASAP. Don't stick around and wait it out. Cut your losses and RUN.

Fact: This myth is one of the most costly because panic selling can be a BIG mistake. In fact, bailing on investments and selling as soon as the market takes a downturn may be the worst thing you can do if your long-term goals haven't changed. That's because you can lose out on the recovery — and you may wait too long to get back into the markets after you've pulled out.5

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Investment Myth 6

Plant Right

If I Could Only Pick the "Right" Stock...

Myth: There are "winners" out there, and I just need to choose the "right" stock to do well in the markets.

Fact: Making millions on a single stock pick makes a great movie, but it doesn't have much to do with reality. You don't have to cherry-pick stocks and look for that dark horse or unicorns to build wealth. Instead, put the real unicorns to work for you: time, consistency, and a solid investing strategy.

"Myths about investing can be incredibly misleading."

Financial Lesson

Break Through These Damaging Myths

Did any of the facts surprise you?

At one time or another, we can all end up buying into a myth about investing.

They can be really convincing, especially if they line up with our values and beliefs.

When that happens, we can use those myths to draw from our own experiences and create connections. It’s one way we try to make sense of things.

Yet, the myths about investing can be incredibly misleading.

They can dupe us into making decisions that get in the way of what we really want for our financial future.

That’s why investing myths are like a Siren’s Song. They’re enticing and deceptive, and they lure you down a path of choices that lead to unfavorable results or even terrible outcomes.

And that’s not just a risk for the naïve or those who are less experienced with investing.

Regardless of IQ, any of us can anchor ourselves to information we want to be true. And anyone can decide to make choices based on “rules of thumb,” even if, deep down, they know better.

We’re far more open to doing that whenever we’re struggling with uncertainties or complex decisions. It’s natural.

But it’s not going to bring the clarity you need to make better financial decisions.

What can, however, are the facts and a fresh perspective.


Kevin Murray

Murray Financial Services


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Kevin Murray

Murray Financial Services

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