Become an Investing Wizard by Reading Harry Potter
What is it about Harry Potter that makes preteen girls and grown men alike squeal with delight when a new book or movie is released? Maybe it’s the adventurous plots or just a really aggressive marketing plan, but I think it has a lot to do with the powerful insight Rowling’s characters share through their dialogue, both in print and onscreen.
Take Dumbledore–he’s meant to be a source of wisdom and guidance for the Hogwarts kids, yet his words often transcend the realm of wizardry and magic to be just as applicable to our reality as well. Apparently, this character has some pretty good investment advice, too.
Dumbledore’s Best Investment Advice
There are gains to be made, but it takes a lot of work to figure out where and how. Beginner investors tend to make poor investment choices and it’s not for a lack of intellect, only experience. That’s why you should be fully prepared to enter the realm of investing before committing your money to anything.
If you’re unable to devote the kind of time it requires to thoroughly research economic trends and current market conditions in order to pin down the best investment options, a financial planner or similar professional has already devoted years to doing just this and can guide you.
Anyone who tries to predict what markets will do in the future and base their investment choices on these guesses is not only wasting their time, but most often losing money.You may see small profits here and there, but your earnings won’t match up to investors who follow what decades of research tell them.
The factors that determine how the value of various stocks, bonds, mutual funds, securities and commodities will move are just too vast and complicated to allow for accurate short-term predictions. Market timing is considered a no-no for any serious investor with a sound plan.
It’s easy to maintain a long-term investment strategy when the market is up, but remember when it plummeted not too long ago? Many investors got scared when they saw their portfolios cut in half and bailed before the market had a chance to recover.
Well, it did recover some–those who stayed in were able to make back a lot of the money they lost, but everyone else was out of luck. When it comes to investing, it’s easy to panic, but the right thing to do is listen to the experts and hold on for the long haul.
Harry Potter and the Deathly Hallows, Part 1 comes out tomorrow, so let us know if you pick up on any other investment-related advice spoken during the film.