SHARETIPSINFO >> Articles Directory >> Biggest Myths about the Stock Market and Tips to deal with myths in Indian stock market tips

 

For many stock market investment is the way of earning money and for some it is mysterious place where some people shout all the time. There is no doubt about the fact that there is a mixed feeling about the stock market in the mind of the common man who is not quite aware of the stock market. There are so many myths and mysterious about stock market in the society and here we are presenting some of the most popular myths and the reality behind them.

Investing in stock market is like gambling – This is perhaps the biggest myth about stock market. Even at this time when there are so many common people investing in the stock market there are still this notion about the stocks market. But the fact is completely different. While in gambling your money completely depends on your luck, return from your stock market investment completely depends on the speculation. Your ability to choose the right stocks at the right time and selling the stocks at the perfect price to get the profit is solely responsible for your profit and loss at the stock market and your luck has nothing to do with that.

Stock market is the place for the rich people – This is another myth that is still in the mind of many. But the fact is that with very little fund you can invest in stock market as there is no fixed minimum level for investing in the stock market. Whatever is your capacity to invest you can do the trading according to that and can make your profit from that.

High priced stocks will come down at a point of time – This is another myth that is hardly true. Of course if the stock is overpriced it will see corrections eventually but if it is potentially a strong stock there is hardly any chance that the price will come down.

Stock that has gone down will rise one day – Similarly if the stock is potentially weak it has least chance that it will overcome the fall and rise in the market.

A little understanding is enough to do trading – There are so many investors in the stock market who have little understanding of the stock market but they behave and act like experts and can not believe that they can take wrong investment decisions. Rather you need to have comprehensive knowledge of the stock market and movement of the stock price to flawlessly pick up the stocks.

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