Let’s Leave These Investing Misconceptions In 2021

There are three amateur mistakes many people make: betting on the Super Bowl, going clubbing for New Year’s Eve, and everything on this list.

Sometimes the psychological aspects of money management are just as important as picking the right assets. That’s why today’s article looks at three common investing misconceptions that should be left in the past.

1. Cheerleading Instant Capital Appreciation

Stocks, real estate, and cypto going up are all good things. But only once you have a full position that enables you to ride the gains to their full potential.

Buying small amount of something and having its price immediately skyrocket is often detrimental. Allow me to explain, using Bitcoin.

For most of 2018, 2019, and 2020, Bitcoin traded under $10,000.

If you invested $500 a month, every month during this stagnant period, you’d have a little over two Bitcoins. Once Bitcoin took off in 2021, you’d have over $100,000 worth of Bitcoin.

However, you’d have endured almost three years of very little price movement to get there.

In contrast, if you bought $1,000 worth of Bitcoin when it was trading around $10,000 in late 2020, you’d have quadrupled your money in…