Everyone knows #investing is the path to wealth, but most focus on the wrong things.
2 MORE misconceptions that prevent investment success:
👇👇👇🧵
1 – You need to trade all the time
@CharlesSchwab , @Fidelity , @RobinhoodApp all make a big deal about how you can trade for free on their platform.
Their ads show people sending trades on their phone with a confident smile. 
@CharlesSchwab @Fidelity @RobinhoodApp There are lots of things you can do on your phone. Investing shouldn’t be one of them. You probably aren’t doing your best research in three minutes waiting in line at the supermarket.
@CharlesSchwab @Fidelity @RobinhoodApp Decide on an asset allocation, research funds, buy the ones that make sense for your situation. Set up automatic transfers from savings to fund your investments. Every month or so log in and invest idle cash.
@CharlesSchwab @Fidelity @RobinhoodApp If you hold multiple asset classes (stocks, bonds, real assets), rebalance the mix once or twice per year. That’s all that needs to happen.
Trading every day is profitable — for the brokerage. They’re often selling the order flow data.
@CharlesSchwab @Fidelity @RobinhoodApp For investors, it usually destroys value.
Again, the name of the game with investing is COMPOUNDING. Trading interrupts compounding and short-circuits wealth creation.
2 – You need to avoid large downturns, A.K.A. “timing the market” 
@CharlesSchwab @Fidelity @RobinhoodApp In the realm of investing, there are no guarantees. We can look at 100 year charts of the stock market and compute an average return. But that number isn’t “real”; the market rarely returns precisely its long-term average.
@CharlesSchwab @Fidelity @RobinhoodApp Market returns bounce around, often much higher/lower than the average.
There are always reasons to sell. But if you’re properly diversified, and have a long investment horizon, markets tend to recover and make new highs. 
@CharlesSchwab @Fidelity @RobinhoodApp Let’s play pretend.
If you actually KNEW that the market was going to crash on a specific day
AND
you also knew what day it was going to RECOVER ….
you could easily make money. Sell before the crash, buy before the recovery.
DUH! 
@CharlesSchwab @Fidelity @RobinhoodApp Unfortunately it’s very difficult to predict downturns in advance. Professionals who do nothing but watch markets for a living can’t do it. Never believe anyone who says they can do this.
@CharlesSchwab @Fidelity @RobinhoodApp The biggest problem with trying to time markets is that the biggest returns often come right after big losses. Many of the best daily returns for the stock market came during scary times like The Great Depression and the 2008 Financial Crisis.
@CharlesSchwab @Fidelity @RobinhoodApp If you try to miss the worst returns, you’re likely to also miss the best returns. [risks of market timing graphic]. 
@CharlesSchwab @Fidelity @RobinhoodApp If you enjoyed this, I’d be honored if you’d follow me @BetterInvestr
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