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5 Trading Myths of Stock Market

5 Trading Myths of Stock Market

June 22, 2021 16:16

[ig_row width="boxed" r_class="none" t_class="none" background="none" solid_color_value="#FFFFFF" solid_color_color="#ffffff" gradient_color="0% #FFFFFF,100% #000000" gradient_direction="vertical" repeat="full" stretch="none" position="center center" paralax="no" relative="no" video_b="no" v_mp4 border_width_value_="0" border_style="solid" border_color="#000" div_padding_top="30" div_padding_bottom="30" div_padding_right="30" div_padding_left="30" ][ig_column span="span12"][ig_text enable_dropcap="no" disabled_el="no" ]Stock market has ups and downs and these are not to scare the people but these are to make people rich. The rich people are not the only people to invest in stock market but the poor are also investing in the stock market. There are many success stories behind the investment in stock market and many people are successful. Only difference between the winners and the losers is the correct knowledge about the shares and the stock market. Each company is selling their share to decrease the burden on them and to increase the number of partners and when there is any profit the partner will be shared the profit and in any case of loss then the results must be taken care by the partners. 


The stock brokers will help you in every detail but without any proper knowledge on the company on which you are investing will be a problem. The long term investments are always advisable as you can sell them when the price is good. There are a few cases in which people will be losing their money and they blame the stock market and these spread the rumours about the stock market and even now people are scared to invest in shares.

This stock market is gambling This is the first myth that people think about the stock market and there is no gambling in this. When it comes to the trading in a stock market you will be paying some money to buy some shares of a company and these shares brings you money. This is easily understood when you comes to know that you are not just buying a share but you are also becoming a partner of that particular firm. Usually when a company is in need of some financial aid they take money from the people and sell them a share from that company. With this share you will become one of the partners and you can enjoy the profits. So, if there is a profit then you will get a share out of it and you are not losing anything as the firm will be a reputed and thus it is not gambling. But before investing you need to check the company detail which is advisable.

Only the rich will buy This is the second myth as stock market is full of rich people and stock brokers. That is not true; the people who invested in stock market will become rich. When a single person invested some money in stock market, they can actually invest on a particular product and they can wait as long as the fruit ripe. But the rich and the huge investors are always in stress because they will be looking for a high return of what they invested.

High to low and low again to high

Many investors always look for a company that has big profits some loss. So when you invest in a big company you will be thinking about the big profits, but if the big company loses then you will be losing all. So every time investing in a big company with huge profits is not the only option. Sometimes companies that are low in income but gradually raising are also advisable as they might take some time to enter into the market and gain some reputation and then they will be earning the profits. Long term investors can invest on these low lying companies also.

There is no gravity

The companies that are in the top positions and off the limits are not going to lose their position every time. The companies that are leading the world will only have a minor loses and they are not even visible in the stock and thus there won’t be any fall of those companies. These companies will be making their own way in protecting their share holders also.

Empty mind

People with no knowledge about the stock market will be telling a lot about it and people who know about it are silent. The real requirement in stock market is about the knowledge on when to invest and when to sell. This will give a clear picture of what is going on in the stock market.

Use of Led ticker tape for the stock market

In olden days stock market used a paper that has some abbreviations of the companies and their stock prices printed on it by a machine known stock ticker. But the time of using paper is replaced by the Led ticker tapeThese led ticker tapes are seen on the walls of the stock market and these are helpful in many ways. The programmable scrolling sign will be scrolling the information about the companies and their values a number of times and even saves the time to see the price and profit of that company.


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