The stock market is a risky place for many people who don’t know about it. There are  many myths and if you believe in these myths, you will lose a lot of money. Some of these myths are made by people who do not want to invest in the stock market.

Howeapeat.ver many myths are not true and in the stock market only assumption is the history repeats.Rest all things work based on  fundamentally and technically.

We always advise investors to do their own research before investing in the market .This will give you more understanding about the market and your investment. Try to make your investing strategy on facts and not on myths.

Now in this post ,I am going to list the 13 biggest myths of the stock market.

1.Investing in the share market is like a gambling.

Most people think investing in the stock market is like gambling. Why they are saying is because they don’t know the basics of share markets.

we need to understand what exactly does it mean to buy stocks. In the stock market the investors buy the share of any company. It means he will be the partner of that company as per his share values.Now he will be ready for getting profit but at the same time also lose when company business declines. For people who invest in the share market means they are doing like a business.

But in the case of Gambling it merely takes money looser and gives to the winner.

Now don’t confuse …

2.Stock market is the place for the rich people.

Most people are not investing in the stock market because they believe that this is only for the rich.

This is completely wrong. This is one of the oldest myths. But the reality of the stock market is you can start with less money from 100 RS. No business where you can start with less money as compared to stock markets.

In case of mutual funds you can start with 5000 RS. Nowadays this amount is not a big deal.

3.Stock that has gone down will go up.

There is no gravitational force to pull down always.

It depends on many factors like business model,fundamentals of stocks ,profits of the company, financial strong holding and sales growth.

If you invest with a fundamental strong company for long terms ,definitely you will get good returns.

4.You Need a Lot of Money to Invest.

This is not true, Even you can start with 100 RS to invest in the share market. They don’t know anything about stock markets that people talked about this myth.

5.Investing is too Risky.

In any work there is a risk. But you have to know how to reduce the effect of risk. Same like in the share market is always a risk. You can minimize that risk to invest for long terms with a fundamentally strong company.

6.Gold is a Classic, Smart Investment.

This not true. Many research shows investment is share market is a smart investment specially for equity. The returns of equity is always more than Gold returns.

7.Buy a Home is an Investment.

Buying a home or any property is not an investment. Because this is a dead asset and investment is liquid asset.

I hope you will clear all your myths about share market.for any clarification please contact us.

Wish you for your investment journey. Jaza Kallah Khair.