After the pandemic nowadays everyone is interested in stock market investing. Because now no one wants to depend on a single income. Furthermore, a stock market investment is an excellent source to get incredible income by investing your money in the Stock market.
In 2021 everyone from a youngster to a person who’s about to retire to achieve his/her own financial freedom. Furthermore, Stock market, which has given excellent returns and became the best platform for investing these days compare to Bonds, Commodities, Gold, etc.
Furthermore, everyone in today’s life thought to invest their money in the Stock market but due to some misconception heard from their friends, family, and follows that stop them to invest in the stock market.
Most common Stock Market Myths
Stock Market Is GAMBLING
The most commonly heard and Biggest myth in today’s world is that the Stock market is equal to Gambling and some people make it popular that this myth has turned out as a theory in some places.
So today we would Compare the Stock market and gambling to give you guys a clear vision that the Stock market is not at all Gambling. So First, both of them have money, risk. Uncertainty of winning and losing and due to these three points most people think both are the same, but they are not.
However, if you see it from another perspective, Although investing in Stock blindly without any education is like rolling a dice in which you can’t predict the result but successful investing is never been a game of chances.
The art of investing is based on the RR ratio but Gambling is the opposite to it where there is always a 50% chance of getting Head and tails if you gamble on a coin toss.
In Investment Investors can change the probability of their winning by their skills and knowledge of the market. Furthermore, they can even predict the outcome , which follows patterns, trends, understanding balance sheets, profit-loss statements, cash flow, etc.
You need money to make money
The second most common investment myth is that you need money to make money but this also a myth You do not need a million of money to start investing. You need proper knowledge about the company and only a few bucks in your account are enough for starting your investment.
Even the world’s biggest investor Warren Buffett started his investing journey at the age of 11 and started with few bucks and now everyone in the world knows him as the investment king of the world.
So For making money billions are not required you need to study before investing.
Investing on your Own is very Risky
This is also a famous myth that investing on your own is risky, but it is not true because Risk occurs only when you do something without knowing anything about that.
Without proper knowledge and training Stock market is risky but with proper training and education about the Stock market, anyone can increase their Risks and Reward ratio.