Every investor starting out takes advice from so called experts. If you have traditionally been a saver and want to start investing your money, you usually approach the person in the bank who is responsible for investments. If you start to trade from your own home, you usually look for experts in this field and you subscribe to their newsletter and invest how they tell you to invest..
Even though these are positive things , ultimately what you want to do is learn as much as you can about what you are doping, apply the knowledge and make the investments decisions yourself. I think every professional trader/investor goes through this experience. They go from being a learner to ultimately becoming their own successful investor.
The great thing about trading and investing is that it is 100% scalable. For example, with traditional brick and mortar business can be difficult to scale as you may need more space, more employees, cover a bigger area, etc. With investing, once you learn to how consistently profit from the markets, you can scale your business by basically investing more per trade. Instead of for example, selling one option contract, you could sell 2 or 5, etc.
Another advantage of opening a brokerage account is that the broker will give you leverage. There are a lot of analysts who recommend not using leverage but if one knows how to be consistently profitable, I see o problem with using leverage as long as one can control it. When you combine an increase in buying power with profitable successful trading, the result is a profitable trader.
So I would advise you to start learning how to invest your money. It is very hard to become wealthy on savings alone. When you look at the measly interest rates, banks are offering at the moment, it just doesn’t make sense to invest your money. Also, when you factor in inflation, one could actually be losing money if the inflation rate is higher than the interest rate you one received on their savings. Don’t get me wrong, I think saving is fantastic and should be a requisite for everyone but I think another step is needed. I think people should learn how to grow their savings and this is where people fall down. They give their hard earned savings to “so called experts” to receive 5% if they are lucky on their money..
Learn as much as you can about investing is my advice. It is your money. There are millions of people who will tell you what to do with your money but its your money…
Don’t give away your power….