TOP 5 MYTHS ABOUT STOCK MARKET INVESTMENTS

 

Do you hesitate to invest money in the stock market? Are you afraid of the gossips made in the name of trading and investment? If you too are considering investing in the stock market but are held back by one of the many myths about the market, here is a look at how these myths are actually false:

 

MYTH 1: STOCK MARKET IS MUCH LIKE GAMBLING:

 

This myth is very often about stock market which is taken for granted just by listening to some loss stories of few people.

While gambling concerns itself with winning or losing by chance, stock market investment is driven by a number of factors including the history of the market, the present economic conditions and information about the company you want to invest in.

 

TRUTH:

This is certainly a wrong comparison. If one has done adequate research about the stocks he or she is interested, one can think of getting impressive returns. The secret to successful stock market returns lies in proper understanding of factors responsible for ensuring the best returns.

 

MYTH 2: PROFESSIONALS CAN DO BETTER THAN INDIVIDUALS

 

It has been seen that people often think before investing that stock market if for selective group of people. But it only requires your determination and interest to be its part.

 

TRUTH:

It is not true in each & every case. In general, people can follow these 2 steps to

1.       Develop a certain know-how of the market

2.       Identify the right shares for your risk appetite.

 

MYTH 3: ONLY HIGH INVESTMENTS LEAD TO HIGHER PROFITS

 

This is a common myth that one must have a lot of financing to survive the various losses along the way.

 

TRUTH:

Follow these given steps to overcome this myth.

Both the investors got impressive returns from stock market and both of them had a very modest beginning. Such living examples are a testament that it does not take millions to begin investing, all you have to do is starH 4: t with any amount you have and put it enough time to grow.

 

MYTH 4: Stock market is a short cut to become rich quickly

 

TRUTH

Due to the active stance of top 10 stock brokers in India and business channels, most of the people carry a perception that it is thinkable to get rich quickly by investing in stock market. People who have a knowledge that stock market is a tool to make rapid money, do not have a precise knowhow of basics of stock market. The price of the stock rises only when the business behind the stock does well. No matter how big a business is, it always asks for efforts and time for it to grow and generate money for business itself and its shareholders. An investor needs to be patient and ready to continue investment in order to make money. Look at the most successful billionaires around the globe, they were effective for decades before making solid return on their investment

 

MYTH 4: Mutual funds are better alternative to stock investments:

 

TRUTH

A majority of investors who do not have enough time and focus to invest and monitor stock market on a timely manner are suggested to invest in the stock market via mutual funds. It is also thought that since mutual funds are handled by professional portfolio managers who carry multiple years of experience, they can feasibly choose stocks that will outdo the market.

Now, when you have broken all the myths regarding the stock market, you must have the knowledge of the best brokers in India in order to make profitable investments. It is recommended to do a thorough market research before associating with a particular stock broker or best stock broker in India.

 

FAQs

 

Why should I choose stocks?

Stocks are one of the most potent ways to build wealth, as stocks are a share of ownership of a business. One person carries amazing potential to get monetary benefits when he owns stock shares. Owning stocks of essentially strong companies just lets your money work stiffer for you since they grow in value over a period of time while also providing rich dividends on a periodic basis.

 

What instruments are traded in the stock markets?

There are several types of instruments traded in the stock market. They include shares, mutual funds, IPOs, futures and options.

 

What do you mean by ADVANCES and DECLINES?

Advances and declines are meant to provide a sign of how the overall market has performed. You get an impressive overview of the general market direction. As the name suggest 'advances' update you how the market has proceeded. In contrast, 'declines' notify if the market has not performed as per outlooks. The Advance-Decline ratio refers to a technical analysis tool that specifies market movement. The ratio is measures using a formula.

 

What are stock recommendations?

One cannot choose to invest without conducting research. Frequently, most analysts and brokerage firms undertake their own stock market research considering the economy, industries, currency valuation, and so on. They sometimes utilize public data from institutions like the Reserve Bank of India and consult with to experts during their research. This is not easily possible for retail investors. As an outcome, results of such research are widely followed by investors, which also give a buy or sell recommendation for explicit stocks.