There are some myths and misconceptions about investing in stocks. In order for you to have a better understanding of what it really means to be a stock investor, be sure that you know the truth behind the infamous myths:
Investing in Stocks is Like Gambling
This is one of the popular reasons why people shy away from the stock market and stay confused on why and how to start share trading. However, this is not always true. Take note that the prices of stocks in the market depend on certain factors, such as the economy, business performance, consumer behaviour, and technological developments, among others. The prices of stocks do not fluctuate randomly. There are always reasons behind every
movement. This is unlike gambling in a casino where the outcome of a game depends on a shuffled deck of cards that nobody has any idea how each card is positioned on the deck.
Investing in Stocks is Highly Speculative
Whether the stock market is speculative or not depends on how you approach it. Of course, if you simply pick the stocks at random and merely rely on pure luck to be successful, then you are speculating based on your gut feeling. As such, you can expect the same results as you would when you gamble in the casino. However, if you approach the stock market professionally where you put in enough time, effort, and research, in your every transaction, if you consider every act as an investment decision, then you are not speculating but investing. Speculators rely on luck, while true investors know what they are doing and have an edge over the stock market.
Investing in Stocks will make you Rich Fast
Investing in stocks is just like any other business. You can make money; however, you can also lose money. Like any investment, there are risks involved. Indeed, there are people who are able to grow their money, but there are also many investors who lose their money. To be successful, you need to understand the stock market and apply certain strategies. Of course, a major part of success is to conduct serious research. You join free stock market courses to become expert in share trading.
It is also worth noting that you will only earn a certain percentage of your investment. Of course, it is possible that you earn more than 100% or even 200% of your investment. However, do not expect it to happen overnight. Therefore, the more money you invest, the more profit you can make.
The Stock Market is only for the Rich People
Some think that you can only invest in stocks if you belong to a particular exclusive group. This is not true. The stock market is open to everyone provided you are of legal age, and there are no other legal prohibitions applicable to you in your state. Especially today where you can invest in stocks by simply opening an account with an online broker, you can invest even with as little as ₹1000, or even less. You need to download a simple share market app and start trading today.