There are misconceptions about stock investing that is important to know since there are still many people that fear this industry. It really is a great field for those that take the time to understand it, which can significantly grow their finances as a result of it.
Stock investing is only for rich people:
You do not need a lot of money to start investing. Most got rich because of the stock market…not the other way around. There are people that make an average hourly wage that have done very well in the stock market. They were determined to learn and practiced consistently to increase their chances of winning each trade. You can start small with $40 and buy 1 share….as you gain experience you will be confident to increase the amount you purchase and eventually achieve your financial goals.
It all comes down to taking action to start where you are to grow that empire that you desire. Success is not an overnight process…
It’s the same as gambling:
No, it is not the same. People use their emotions in gambling while proper stock investing requires planning. This is not a game. This money will be used in securing your future such as retirement. When you buy a share of stock you are taking part ownership of the company so this is serious business!
Follow the motto: “Hope is not a strategy.”
If you feel that you can walk into the investment world without a plan then stock investing may not be for you. Gambling with your future has very high consequences so taking the time to plan your strategy when it comes to stock investing is critical.
This industry is only for the professionals:
Anyone can start their own portfolio with little knowledge but your success really depends on you! You can conduct your own research to gain the knowledge you need to become successful in this industry. There are many books and online courses that will give you substantial information to grow your money.
People usually join the stock market to build up their IRA retirement plans so they can retire with money to live on. There are others that participate in stock investing as another income stream for their household, which is a good alternative as well.
Stocks that go down will eventually go up:
Now this is clearly why people lose money in the stock market. You are not getting a good bargain as the stock continues to trickle its way down to zero! When a stock goes down, there is absolutely no guarantee that it will rise back up. It is best to pick a stock that’s climbing its way up and if it is a great stock it will continue to go even higher. There are many methodologies out there to help you understand how stocks operate so you can avoid a catastrophe.
It’s the best way to make quick money:
No, this is not a way to make quick cash. This industry gives people a way to make additional income and build their retirement accounts. Learning various strategies and techniques to succeed in the market takes time but the more you study the craft the faster you can make money.
Stock investing is chosen as a long-term investment plan so patience will be a requirement to succeed in this profession.
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By Krystle Hall