Most common Stock Market myths debunked | Fusion - WeRIndia

Stock market, it is an ever elusive mystery. No, it’s not. It just something a lot of people treat it as.

There are so many rumors and myths about it, it would take days to list them out.

However, there are some myths that a majority of laymen believe.

These myths need to be debunked so that you can invest better and make a good profit.

Comparing stock market to gambling

Many people compare the two because of the high risk, high reward system. But, that is pretty much the only similarity. Investing in a stock gives you ownership of a company. If the company makes a profit, you make a profit. Investing increases value.

However, in gambling, there is no value created. The winner gets the money from the loser. There is no benefit to the economy by gambling. There is no collective ownership.

Stock market is for the rich and experts

If you believe this statement, then you might never be able to make a good profit for yourself. There are so many stocks that even students doing part time jobs can invest in.

Furthermore, predicting stocks accurately is impossible for anyone. The so called experts usually invest in stable companies and manage their risk by investing in different risk level stocks. This minimizes loss.

You can find all the information you need about a stock just by googling.

Fallen stocks make great profits

No, they don’t. If you see a stock that is at a low level for a long time, chances are it’s going to stay there. If a stock reached a high point at some time but has been stuck at a low point for a long time, don’t invest in it. Believing it will go back to that high is a mistake. Rather, invest in something that is stable and has decent ups recently.

What goes up comes down

Many new investors avoid stocks that are steadily going up thinking it will fall down. Unless there is a good reason, a company that is performing well usually only goes up. You can find information regarding the company by simply googling. Check its performance and invest.

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