Myths about the Stock Market

Many investors think twice about whether or not to invest in the market. But before making any decision one should have sufficient knowledge about the market and its activities. 

If you believe the myths being told in the stock markets it will affect one’s decision and turn the investment into a loss. Dispelling the myths about the stock market will change the whole trading situation and make investors think around.

Here are 5 common myths about stock market investments.

Investing is risky:

We learn activities like driving a car, swimming, riding a bike, walking on the sidewalk through our parents, relatives, friends and coaches. But we often overlook the importance of educating about life handling, investing and saving. 

This is the most essential skill for life. You will learn this in the stock market course in tamil.

Investing is really risky. But if you neglect to know about investments, it means that you lose your lucky chance. If you do not understand the risks involved in its operation, then investing is absolutely risky for you. 

Just as you would arrange for a trainer to learn to swim, you need to train yourself to understand the investment properly. Often the danger comes from not knowing what you are doing. 

Training yourself will eliminate risk from your investment decisions. So, investing in the stock market will not be risky if you know how to do it the right way.

Investing is gambling:

There is a perception that investing in the stock market is tantamount to gambling. But there are a lot of differences between investing in the stock market and gambling. 

Gambling is the act of betting with money and taking the loser’s money and giving it to the winner. But stock market investment is not like that. 

So there is no need to compare the stock market with gambling. Before investing in the stock market, we can get a fair return if we are fully aware of it.

I’m not rich, I have no stock market:

You do not have to be a millionaire to invest in the stock market. The stock market is the only place where you can start investing with a small start-up capital. 

You need at least a few lakh rupees to buy a property, even at a low price, compared to real estate. 

You do not have to be a millionaire to build wealth in the stock market, all you need is to start from the beginning and continue to invest and give you returns in the long run. Read detailed article on share market in tamil.

As a young investor you can take high risk:

Young investors tend to think about taking more risk in order to make surplus and extraordinary profits. 

Even if young people have more years than an older investor to cover, one should not let one of the more risky investments fall to record higher profits.

Warren Buffett’s 2 investment rules:

Rule number 1: Never lose money

Rule No. 2: Never forget Rule # 1.

The investment is direct. Buy Less, Sell More:

This is one of the most common investment myths among non-investors. They think investing is simple and straightforward. You should buy when the price is low and sell when it is high. 

What they do not understand is that it can take many days for investors to understand which stock is closing higher and to what extent a stock may fall. Even if you buy a stock at a low price, finding the right place to sell it can be challenging.

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