It’s 2021 and investing in the stock market has become quite a legit career option. But people still believe in lots of misconceptions that make zero sense. Are you trying to build up your investment portfolio? Or have you been avoiding it throughout your life? Believing in those myths can be harmful to both scenarios.
It brings us to the fact that such myths have affected many investor’s decisions. Most traders have become a victim of those. These are the results of incomplete knowledge and common investment rumors. Let’s brush up on our knowledge and identify what NOT to believe when you are investing in the market.
Investing In Stock Market Is Too Risky
Many people stay away from the share market because they think it is equal to gambling! But this is not the reality. Investing in a single stock is a bit risky. But trading in a broad market portfolio is not as risky as it appears. The market moves in cycles and it has ups and downs. Some investments are riskier than others but with the proper knowledge, research, and guidance, you can learn when and where to invest.
It needs lots of $$$$$
Many first-time investors believe that the stock market is for the ‘Richie Rich’ only. Yes, it requires capital but you don’t need to be filthy rich to start. Taking your first step towards trading doesn’t mean you should have all the fortune of the world. Based on the type of your investment, there are so many ways to find opportunities that meet your financial realities. You can start even with a little money. For example, mutual funds like SIP (Systematic Investment Plans) allow you to invest only $8 per month. Consistency is more important than the amount of money while trading.
It’s A Passive/Sudden Income
People think that investing is like buying lottery tickets. It’s a sudden game and if you win, you earn some quick cash. But this is far from reality. Just like other ventures, investing in the stock market takes time to show results. That is why consider it as a business only. The more effort, time, and consistency you put in, the more returns you will get. So, if you want to make the most of your investments, roll your sleeves up and put a lot of energy and time in!
Trust Your Guts Blindly
Gut feeling is a great thing to have and is helpful when you are trading. But it should not be the only way to invest in stocks. When you are trying to make quality investments, you need information and knowledge. Despite striking the gun on an opportunity that seems lucrative, the more you research, the better are your decisions.
Conclusion
We bet while reading this blog, you will relate to every myth mentioned above. You heard all of them before. Probably these are what keep you from making some smart investments for your future. If so, please stop believing everything you hear or read about investing. It is no miracle, it is no betting, it requires lots of hard work, research, calculation, and smart planning.
