Myths of Share Market

 Indian Stock Market

When it comes to the stock market everyone fears losing money, it is a myth that investing in the stock market is a game of gambling. Firstly, we have to look what is the other ROI (return on investment) on a different platform. Most people believe in saving account which has a return rate of approx 3-3.5% as per different banks, then people go with FD and RD which ranges between 7%-9% and 6%-8% respectively, while the share market is the only platform where the return is variable it can be 25% or 5% depends on how the market performs.

 So, Here we will discuss some myths of the market:

MYTHS OF MARKET

1. Investing in Market Much Like Gambling 

            

This is the most common myth among people, usually, spread by people who have taken the loss in the market and the same people give you information about the negative side of the stock market. However, the stock market is a gamble, this is not true at all.

Where gambling is a game in which you have to guess, based on that you will either win or lose. But as far as the stock market is concerned, it is wrong to compare it with gambling because in this you can not earn money only based on estimates. In this, you should be aware that you have to take which share according to your risk appetite if you want to earn money for a long time only based on estimates, we can earn money for some time.

2.Highly Risky 

 

Yes, the share market is subject to market risk, but it is all about patience. It is also a myth that the share market has a high-risk investment tool, but in the end, if u have patience u can make a good profit from the market. Investing in the right stock comes from time and study. People often think shares with high prices are risky to trade and shares with low prices are best to buy, but as share market only deals in many factors.

3. Share Market is for Experts

If u really think the share market is a game for 'experts' then you are totally wrong, it is a complete misconception as anyone can participate in the stock market.

Investing in the share market certainly requires developing a certain knowledge of the market and identifying the right shares according to your risk appetite. Anyone can invest in a share market with low capital but to gain profit for a longer period one should keep on learning and be patient according to market conditions.

4. Investing More Money Makes More Money

It is a myth that discourages the new investors to join, this myth comes from believes to make good profits you must have good financing in the market to survive from upcoming losses. However, this is entirely misguided.

Like all other investment options, the share market offer opportunities for traders with a variety of risk appetites and capital. After opening a trading account, you can even invest in shares for as low as you want. The main thing is to recognize the right companies and shares to invest in and to develop a strategy to minimize your losses from the very beginning.

5. Stocks That Goes Down Must Come Up 

The biggest myth is, stocks that go down is a must-buy opportunity, whatever the reason for this myth but this is most destructive to amateur investors than thinking that a stock trading near a 52-week low is a good buy.

Suppose XYZ Ltd. shares currently trading on Rs. 500 and suddenly stocks have fallen to Rs. 300 that doesn't mean Rs. 300 is a good buy for the stock. Amateur investors think that the price reduces from Rs.500 to Rs.300, we have an opportunity to buy a stock Rs. 200 cheaper but suddenly it goes down to Rs. 100, so there is no point in buying stock thinking stock that goes down is a sure buy opportunity.

Same with a mentality of stocks goes up comes down eventually.

With the help of this video, you will get a better understanding 

Reference: INVESTORIAL

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