Separating Fact from Fiction: Stock Investing Myths

Investing is like gambling
Investing is part art part science. It’s an investment in a business.

Market is controlled by brokers and rich people
Market is influenced by a wide variety of factors and participants.

You Need a Lot of Money to Get Started
You can start investing with small amounts of money. There are investment vehicles, like mutual funds or robo-advisors, designed for investors with limited funds.

Investing is a Get-Rich-Quick Scheme:
Successful investing typically requires patience and a long-term perspective. It’s not a guaranteed path to quick wealth.

Monitoring prices and advice from major players is enough
Analysis of major players may be flawed. Monitor prices to update yourself only.

Fallen angels will recover, eventually
It’s not necessary that a stock which has gone down will rise again.

Stocks that go up must come down
Fundamentals i.e. profits, risk and growth ultimately dictate prices

Only Experts Can Invest Successfully
While expertise can be beneficial, there are many resources available to help individuals become informed investors. You don’t need to be a financial expert to start investing wisely.

Understanding these myths and having a clear, informed perspective on investing can help individuals make better financial decisions and achieve their long-term financial goals.