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[False Limiting Belief] You Will Not Cause Others to Lose Money If You Make Money

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do others lose if I make money in stocksCreating wealth is about more than saving money.

You must also remove any limiting beliefs that block you from creating wealth.
 
When it comes to investing one of the biggest limiting beliefs is: “If I am making money in the stock market then others are losing.”
 
This is not true.
 
You can make money in the stock market without harming others.
 
Well, I’m here to tell you that this is not true.
 
Here are three reasons that you are not hurting someone’s wealth when you win.
 

Different Timeline

 
Everyone buys and holds their stock on different time frames.  
 
The person that you’re buying the stock from may have bought it 10 years ago at the price of $10 and sold it today for $100. You might then turn around and sell it for $105, thus both making a profit.
 
You can’t assume that you are buying a stock from someone at a loss. You do not know their situation.
 

Dividends

 
Dividends are an often forgotten about form of return.  And one that drastically increases your return.
 
Dividends can reduce the amount of money you need to sell your stock for to break even.  
 
Let’s say that you buy a stock at $10 and sell the stock at $9, which is a loss, but in the meantime you had gotten $5 in dividends.
 
Instead of losing a dollar, you are actually up four dollars because of the dividends.
See for yourself the value of dividends. This calculator is a great way to see why they make a difference.

Company Buy Back’s and Sales

You are not always buying or selling a stock with an individual. 
 
Sometimes companies will buy their own stock back or issue new shares.
 
There are many reasons why a company will buy their own shares.  A couple examples are:
  • When stocks are undervalued. They may then re-issue them when the value is higher.
  • When they don’t have any growth opportunities for their extra cash.
  • Improve financial ratios.

Things to Keep in Mind

  • This does not mean that someone is not losing money in the stock market. It means that you are not causing someone to lose money.  Everyone trades for their own reasons and they trade based on their own beliefs.  Please do not focus on this when deciding to invest or not.
  • This is for stocks, not stock options.  Options are different.
 
Don’t let the fear of causing others to lose stop you from investing for your future.  By avoiding investing you cost yourself a secure future.
 
Eliminate this limiting belief and start creating your wealth.