Stock Myths

Posted by Mutual-Funds | Stock Articles | Wednesday 11 August 2010 1:00 am

I saw that many people are afraid to invest in equities or commodities markets, simply because I do not know, think some of it even for the game and not want to enter, and some think that the game of the rich and are the only ones who drive these markets. So I decided a few myths about the stock and commodity markets clear here.

Some of the myths of the stock market are:

Trade and powered by rich people and brokers, theyare the only ones who deserve

This is totally a myth that large institutional investors or brokers can move markets as they want and deserve, as previously occurred only brokers that those who were with them all the underlying data, but with the advent of the Internet may also have a normal corporate information with them and that person can use it to speculate in the markets, to some extent. Marketing occurs in line in most marketsDetails of the nearby settlement of assets at the end of the day in your inbox or mobile phone or PDA, which is very useful for intra-day traders. The long-term investors for individual institutional investors, as then under extreme pressure for high returns every quarter, while individual investors the opportunity to consider the temporary fall in favor of long-term prospects.

Investment in stocks is like gambling

Many consider tradeThey are playing the stock market because the prices of stocks up and down and people must go to them and make profits or bear the loss, except for all that is tangible. But forget what we take into account that represents an ownership share of a company that owns the right to claim on assets and a fraction of the profits generated by any undertaking.

Gambling is a zero sum game, takes money from losers and there is no value for the winner will never be created. ByThe investment increases the total wealth of the economy. As companies compete, increase productivity and develop products that make our lives better. So, is the difference between investment and wealth creation in a zero-sum game.

After some 'knowledge of equity markets can not be subject to

Is there an old saying in India or should be fully informed, or rather not have their knowledge to everyone, because half of knowledge leads only to disaster. If youshare with a little 'knowledge about stocks and plans to enter, then I suggest you take the full knowledge of the markets or hire a consultant a few. One thing is here noted that the cost of investing in something that does not fully understand, far exceeds the cost of using an investment consultant.

Completion

At the end I would say that after the crowd did not help to say on the stock markets, what they say, do whatwill not help much. successful investing requires a lot of hard work and analysis.

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