October 30, 2020

3 Common Myths About Stock Market?

3 Common Myths About Stock Market

3 Common Myths About Stock Market

Stock market ca be the great place to make money because without working> everyone knows about it right?

People think they can make money from the stock market very easily which is not true because if the stock market was easy then no one would be poor. So, People who are making millions of dollars from the stock market have spent a lot of time learning about the stock market. Nothing comes easy.

But there are some common myths about stock market that people still believe in and unfortunately they lose money in stock market.

There are various myths guarding the stock market but I am going to share some of the common myths that you should worry about before you start investing in stock market as a beginner.

1.    Start with less money

People believe that they can start investing in stock market with just 30$ and turn it into 300$. Which is not true at all?

If you want to make huge money in stocks you need to invest huge amount. Some people invest $30 or more and think they can create a great portfolio. NO that’s not true. If someone is telling you that you can start will small and get huge money out of it then they are only making you a fool.

Even if you get returns on your 30$ or 50$ how much it will be? $1 or $2 dollars after 2 or 3 months.

Now ask yourself isn’t it better to do something else with that money. You can just buy goods for 30$ and sell them for 50$ which is much better than investing less money in stocks.

2.    Invest and you will learn by yourself

Some people think stock market is an easy place and investing money is a piece of cake. Most time people will tell you to invest money in stocks and you will learn with time.

Which is a big lie. If you invest without proper knowledge you will not earn anything in stocks. You will only keep losing money. You have to make sure to learn as much as possible so as to reduce the chance of failure. You should keep learning from good sources and websites, know more on how to manage your finance, and live a financially free life then click here and start learning.

3.    Your money is totally safe if you are investing with a pro investor

If you think that your money is safe if you are investing with a pro investor. Then it’s wrong. In stock market there can be no pro player because stocks can change anytime and no pro player can stop your losses if your stocks are not performing well.

So, it’s always better to understand stock yourself also before you go and start investing.

4.    Mutual funds are good for long run

Most of the people think that mutual funds are great for investing money as it involves less risk because your stocks are managed by professionals. Well, all that is true but the fees charged by mutual funds can really hurt your investment in the long run.

Let’s say you are paying 1% fees on your capital when in future your capital increase then paying 1% will be much more. Let’s take an example let’s say you have the capital of 300$ and 1% of 300$ will be 3$ but in future your capital will increase in share market at that time 4000$ – 1% will be $40 dollars.

So mutual funds fees can be pain when it comes to stock market.

5.    Buying stock that are popular

It doesn’t mean that if a stock is popular then it’s a money making stock. There have been so many cases where people have invested money because they heard that this particular stock is going to do great but later they only faced loss.

So it’s always advised to do your own research before investing in stocks. A search will decrease your chances of failure in stocks and lot of pros always consider research over some hot tip