Article published by : investmentbulls on Monday, May 20, 2019 - Viewed 182 times

Category : Investing

6 Myths of Stock Market Trading



The share market has been the most appealing way of investment for all investors and traders. But somewhere Stock Market Trading is still not practiced in India much. The main cause of this is a myth which normally triggers every beginner’s mind. The capital market is very uncertain and each moment in it can result in tremendous change, it has not only a problem for beginners but has also stunned the stock market trading experts as well. There are various myths which should get burst soon, as only 2% of people invest in stocks in India. Stock market investment is more tricky and risky for beginners. People are still not aware of the benefits of share market as they follow the myth. Also, there are different investment plans which are safer and are easy to understand. Today we will have a glance at 6 myths and how to overcome it so that we can earn good returns from the stock market.

Investment Should Be High

People think that they need a lot of money and then only they can trade. This is not the case as you can start trading with just Rs 500. The stock market is for all and there are various brands in which you can invest. You can go for equity mutual fund SIP.

Investing Is too Risky

People compare stock market trading with gambling and assume that the capital market is risky. Of Course if one is just investing in one stock then chances of high-risk increases. Most of the traders invest in the market without a stock market analysis which again makes your profile weak. For beginners, it becomes hard to understand what is going on in stock market trading and how to handle their current positions in share market. The only answer is case studies and goes for technical analysis of stocks. Share market is not that easy to predict but is not impossible for one to excel at it.


Performing Stock Market Trading On Your Own , takes too much time.

In the Stock Market Trading, there is no discrimination. Anyone and everyone has got equal rights and opportunity. The only thing which drives your decision towards a wrong direction is an incorrect strategy and when you don't go for technical analysis of stocks. When one hires a Stock market Research company they feel safe because the firm is trained and will use their concept at the right time. If an individual is expert enough then its knowledge can only give returns in less time. So investing on your own will take the same amount of time as researcher will.

Investing in share market is simple. Just buy low and sell high.

Yes, investing is very simple in share market but is not just restricted to buying or selling. It is loaded with tons of strategies and analysis. Before investing, proper stock market analysis is a must. Also between buying and selling, holding is also a major concept. When it comes to buying or selling it is important to use your techniques on time. In both cases one should keep watch on the market regularly. One can sell high and buy low. This method is called short selling.


My time will surely come in share market

When one starts believing in luck then they don’t rely on technical analysis of stocks. People keep trying with a single thought that their time will come. End result sometimes gets heartbreak; also this creates an adverse effect on your bank balance. Just holding a share and thinking it will give profit. That is a solid myth. Also if one is not diversifying then my time will surely come will only be a dream.


My money will get doubled

Share market gives higher returns this is a fact but nowhere is it mentioned that your investment will get doubled. One’s investment can show fruitful returns but expecting just double is not a practical thought to have. Returns will get higher if the investment is done according to a plan.

These myths have created a high impression on every trader's mind but think vitally if these things would have been true then the ratio of 2% trader would have shown a drastic change. People who are getting good returns choose a proper plan and invest in research. Every field needs some preparation; it goes the same with the share market.

If one wants to trade in a disciplined manner then this myth should have no existence. There are various routes which can lead one to a profitable investment journey. Also, stay away from fraud which triggers these myths into one’s mind and stops one to invest. Investors should remember that Rome was not built in a day and traders should know that Hiroshima and Nagasaki were destroyed in a day.

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Keywords: Stock Market Trading, Technical analysis of stocks, Stock market analysis

By: investmentbulls

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