Whenever you talk to the the common people belonging to any profession about stock market investments then they will throw a number of absurd reason at you why they would not invest in the stock market. It happened in the last few years due to the many ill informed people who first made some illogical investment decision based on their half baked knowledge and when they burnt their finger then they started maligning an entire investment asset class. The 3 biggest myth which had spread by the ill informed people about stock market investments are as following:
1) Stock Market investment is a gambling.
2) No one make money in the stock market.
3) It is only for the rich and big people.
The most common myth you will hear about the stock market that it is gambling but they wont be able to tell you a difference about what is gambling and what is business. The only common thing between gambling and business is that on both you put your money on the stake in order to make some returns. But on one hand, where gambling is blind risk on your money in order to make super natural profit with never having more than 50% chance whereas in business you put your investment on the risk for the opportunities when it seems odd would be in your favor and also had a tried and tasted system which showed that particular system had worked in the past. So take your trade/investment as a business opportunities not as a gamble.
The second biggest myth about the stock market among common people is that no one makes money in the market. Partially, they are right this time. In investment/trading world, only 20% make money in the market and with the same logic in any profession 20% people do well in their lifetime. But the problem with trading/investment world is that everyone comes as an expert here without any knowledge or education. We all are very well aware that in any profession like engineering, medicine, journalism, business or any other stream; you spend 4-7 years of your life and good amount of money to begin your career in particular profession. In trading/investment world, people start their career by just reading few newspaper articles, books or getting advice from the people who do not have to have any kind of relations with the stock market. So in trading/investments, you need to prepare yourself to make the decision by yourself or should hire the services of an expert professional which is ready to exhibit that how his system has worked in the past.
The third biggest myth about the stock market that it is only for the rich and big people because they have the big money to make money. They forget the basic rule of any business that ROI( return on investment.) which means you should have a realistic expectations on your employed capital and not be get carried away by the some unrealistic claims and do not compare your returns with the other people too. Because you never know what kind of capital they had employed, what kind of investor/trader he is like aggressive or conservative. You should be only concerned about your realistic returns on your employed capital.
1) Stock Market investment is a gambling.
2) No one make money in the stock market.
3) It is only for the rich and big people.
The most common myth you will hear about the stock market that it is gambling but they wont be able to tell you a difference about what is gambling and what is business. The only common thing between gambling and business is that on both you put your money on the stake in order to make some returns. But on one hand, where gambling is blind risk on your money in order to make super natural profit with never having more than 50% chance whereas in business you put your investment on the risk for the opportunities when it seems odd would be in your favor and also had a tried and tasted system which showed that particular system had worked in the past. So take your trade/investment as a business opportunities not as a gamble.
The second biggest myth about the stock market among common people is that no one makes money in the market. Partially, they are right this time. In investment/trading world, only 20% make money in the market and with the same logic in any profession 20% people do well in their lifetime. But the problem with trading/investment world is that everyone comes as an expert here without any knowledge or education. We all are very well aware that in any profession like engineering, medicine, journalism, business or any other stream; you spend 4-7 years of your life and good amount of money to begin your career in particular profession. In trading/investment world, people start their career by just reading few newspaper articles, books or getting advice from the people who do not have to have any kind of relations with the stock market. So in trading/investments, you need to prepare yourself to make the decision by yourself or should hire the services of an expert professional which is ready to exhibit that how his system has worked in the past.
The third biggest myth about the stock market that it is only for the rich and big people because they have the big money to make money. They forget the basic rule of any business that ROI( return on investment.) which means you should have a realistic expectations on your employed capital and not be get carried away by the some unrealistic claims and do not compare your returns with the other people too. Because you never know what kind of capital they had employed, what kind of investor/trader he is like aggressive or conservative. You should be only concerned about your realistic returns on your employed capital.