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  • Category: Miscellaneous

    What are the myths of investing in stock market?

    Most people stay away from stock investing. What caused them to not invest in the stock market? People can invest on those stock market companies whose product they used daily. I would appreciate if someone will share some myths about investing in the stock market and the reasons for such myths.
  • #647352
    This was posted as a query in our Ask Expert section. It is more appropriate for an interesting forum discussion, hence shifted here.
    When you make a commitment, you create hope. When you keep a commitment you create trust! ~ John C. Maxwell

  • #647358
    What I feel that most of the big companies are having allegiance with one party or the other and those party who are in power do favor such companies which supported them through elections and funding. So the products are bound to be famous during peak time and when the ruling party is about to fall, then the customers also change their stance. Now for example Patanjali brand has risen like anything, thanks to the support of NDA government and when this government falls, there would be less takers for that products. Therefore the stock markets revolve around the political likes and sops announced now and then. Especially during the budgets we have seen the strange behavior of stock markets based on the taxes being levied on each product. That is why investing in stocks is the gambling and risk factor is more.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #647363
    The myth or the other word for stock market is an official and authorised gambling Den. There is always a risk factor involved in share market. At times it lifts up and at times it drops you down to the earth. Many have become rich by luck, and many have lost their assets and hard earned money. It is good as well as bad.

    @ Let us not share our hard earned cash in share market. If you have additional money not knowing how to spend it, then go to the share market to spend it, or multiply it according to your fate.

    No life without Sun

  • #647369
    The author is right with his opinion to some extent. We can buy the stocks of the companies, whose products we use daily. But the problem is with the time of entry. Everyone will be knowing about these stocks and their valuations may be high always. When the share prices come down, we may not buy these stocks because of fear of further collapsing.
    There are many myths in the stock markets. I will point some
    1) We can become crorepatis in the stock markets
    2)We can buy the stock at the 52 week low and can sell the stock at 52 week high
    3)Investing in Stock market is like betting or gambling. (It is really not, if you have good knowledge about stock markets)
    4)Assuming that I know everything about stock markets (Everyday, we have to learn. It may not stop until we die )
    5)All the fallen stocks will bounce back again

  • #647370
    It is purely a gambling only. There are chances for making good money. At the same there are many chances to last everything. There are no standard rules and regulations. It is purely speculative. There are people who made excellent money and there are people who lost everything. It is for the people who have a lot of money and who can afford losing some part of that money can invest this. Generally, people will be watching the trends of the shares of the some companies. When they start a little upward moment they will purchase those shares and wait as they increase and as soon as they observe a little decline they will sell it.
    There are some people who sold their lands and invested in shares and made good progress. By seeing them some more people ventured into the same and lost almost everything.
    If we want to invest in this market we should consult some financial advisers who will help us in taking correct decision in correct time.

    always confident

  • #647373
    The author wants a discussion on various myths well-known in the stock market. According to me, myths are more or less superstitions. We can't reply about myths in the 'Ask Expert' section.
    Beware! I question everything and everybody.

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