Stock market can be a very good option for investment. However, you will find that there are a number of stock market myths existing among the common people. These unrealistic and wrong beliefs can sometimes prove to be very dangerous. Here we go over those common myths about the stock market.
Investing in stock market is equivalent to gambling - This is the most common myth which I found among the common mass. The belief is that when someone makes money, someone else loses it. They are of the opinion that money never grows in stock market, it only gets transferred from one investor to other.
Next comes the traditional wisdom - Buy and hold. Many people think that the best strategy to make money in stock is to buy, hold them for years and sit on them for as long as possible, and you will definitely beat the market.
An equally popular myth is that investing in stock market is full of risk, since the market is random and unpredictable.
There are many more such wrong beliefs which prevent the common people from investing in stocks and keep a realistic view of the stock market. If you think that I have missed out on some important point, please feel free to leave your valuable suggestions.
Nice tips on myths about stock market. But how to overcome these fears so that common people can invest money on stocks? I have seen one of my neighbour going bankrupt.
ReplyDeleteI have a much longer list on this at:
ReplyDeletehttp://prostocktraders.blogspot.com
others: buying drives the price, selling drives it down - it's just the opposite, they raise prices to cause buying, lower them to cause selling - the "tail wags the dog" in other words..
all the pros want is trading.. we pay their bills that way..
Jose S
@Jose
ReplyDeleteThanks a lot for sharing your list and I appreciate your work.
Cheers!
@Shabnam
ReplyDeleteThanks Shabnam and I will definite try to write a post on how to overcome these fears in some of my upcoming posts.