{"id":3537,"date":"2018-10-10T09:00:16","date_gmt":"2018-10-10T03:30:16","guid":{"rendered":"http:\/\/capitalante.com\/?p=3537"},"modified":"2019-02-26T19:59:38","modified_gmt":"2019-02-26T14:29:38","slug":"6-myths-about-stock-market-and-their-reality","status":"publish","type":"post","link":"https:\/\/capitalante.com\/6-myths-about-stock-market-and-their-reality\/","title":{"rendered":"6 Myths about Stock Market and Their Reality"},"content":{"rendered":"

Stock Market is a mirror image of the economy of any country. Stock market expresses the economic condition of a country. There is a vast scope to earn money in stock<\/g> market. Many people consider stock<\/g> market very lucrative while many consider it very risky. Most of the people are unaware of the stock market while many make loss<\/g> here due to insufficient knowledge about stock<\/g> market, or hurry to earn more and more at a short period. In fact, there are some myths popular about stock<\/g> market. People actually do not know the reality behind those myths. Here we will clear out the common 6 myths about stock<\/g> market and explain the real cause or explanation behind them.<\/span><\/p>\n

Investing in stock<\/g> market is like a gamble<\/strong><\/span><\/h6>\n

Many people who do not possess proper knowledge about the stock market think that stock<\/g> market is just like a gambling<\/g>. They think that stock<\/g> market and casino have no difference at all. They both carry risk<\/g> of losing money, but the real fact is the stock market is the mirror image of the economy of any country. The stock market is a gambling<\/g> for those people who undertake a risky action i.e., make investment<\/g> without making use of fundamental analysis, technical analysis, qualitative analysis, profit and loss account, balance sheet etc. They usually tend to invest in those companies which are recommended by their friends or the morons sitting on business news channels or they are misguided by any source. So, please make use of the above said<\/g> components to any company before making investment<\/g> there.<\/span><\/p>\n

The stock market is only for the people who work in Dalal Street<\/strong><\/span><\/h6>\n

It is not necessary to be a part of Dalal Street. You do not need much academic education also to be an investor. Ace investor Warren Buffet says that any individual can understand what stock market is and how it works if he has done 10th<\/sup> standard maths. The only thing is that you need to read different books written by veteran investors and analysts. These books reveal the investment style, company analysis, investment strategy etc. After reading them you can understand what stock market is about and how it works. You will come to know what measures to adopt before investing in a company or stock. You can gather knowledge about the ways to analyse<\/g> a company.<\/span><\/p>\n

Investment is not necessary at an early stage<\/strong><\/span><\/h6>\n

According to Albert Einstein compounding is the 8th<\/sup> wonder of the world. Actually, there is no ideal age to start investment<\/g>. Ace investor Warren Buffet started investment at an age of 11 years, though he thought that he was too late. Many people think that they are too young to make investment<\/g> in the stock market. But you need to start investment<\/g> as early as you get your first income. So, if you start investment<\/g> at an early age you will get higher<\/g> return owing to the compounding effect over a long<\/g> term.<\/span><\/p>\n

Share market requires lots of money<\/strong><\/span><\/h6>\n

Do you know that you can start investment<\/g> with just as low as Rs.<\/g> 500\/-? Many mutual funds offer schemes where an individual can start investment<\/g> with just Rs. 500\/-. If you make an investment of Rs. 500\/- per month over a period of 30 year<\/g> then you will get a return of corpus amounting to Rs. 28 lakhs assuming 15% CAGR. So, start investment<\/g> as early as possible with an amount<\/g> of only Rs. 500\/- per month.<\/span><\/p>\n