Common misconceptions of early-stage of investors in the stock market

Common misconceptions of early-stage of investors in the stock market
Reading Time: 2 minutes

One of the biggest reasons most people stay away from stock investing and do not take part in this wealth creation journey is mainly because of pre-assumed misconceptions they carry in their minds all the time! So are you the one among those? Then don’t worry! I have your back, and I assure you it won’t be the same after reading this.

Let’s begin breaking the myths in 1 shot.

  1. “Stock Market is gambling.”

Well, yes! It CAN be gambling if you don’t have enough knowledge and skills while you trade or invest and just do it for the sake of doing it so you don’t miss out on your FOMO. So, It’s super important to make sure you invest based on well-researched information and stock analysis, which you can do by gaining the proper knowledge in this field. This is one of the most crucial things to note, as many need help to do this.

  1. “High Risk, High Reward.”

How optimistic this statement sounds right? But let us dig deeper, Definitely, if you have a higher risk appetite, There are chances you may earn a high reward, but the downside is that high risk involves more uncertainty and volatility as in the market. If you firmly believe in the statement above, accepting that it can lead to losses is essential, and “ you “ will have to sustain it.

  1. “Buy Low, sell high.”

To all the newbies in the stock market, you must have heard it, but in reality, if you apply this in markets, there are high chances that you will get into trouble Because if you see the share price falling and seem to buy, you don’t know how much more it is going to fall! And if you sell at high prices, you don’t see how high it will reach. So better, Never catch a falling knife.

  1. “FIIs and HNIs are buying this! I will also buy it. “

One of the big blunders you can make is relying on the data of FIIs(Foreign Institutional Investors) and HNIs(High Net-worth Individuals). Now you might question, what’s wrong with copying the portfolio of successful investors? Well, there is a problem; you know they bought the stock, but do you know at what price? When are they selling it? For what time frame they brought it? And most importantly, Why they bought it? What rationale do they have behind it?

Common misconceptions of early-stage of investors in the stock market

So, Before you start your trading or investing journey, avoid committing these mistakes again, keep a clear mindset while investing, and take charge of investments! Wishing you a happy and successful investing journey ahead,

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