Stock market myths busted
BECOMING a stock trader can be a lucrative career path.
According to investopedia.com, the stock market refers to the collection of markets and exchanges where regular activities of buying, selling, and issuance of shares of publicly-held companies take place.
There are various types of stocks:, among them common stock, preferred stock and growth stocks.
The article is about busting the myths about the stock market, so you can make an informed choice when considering it as a career. It’s as rewarding and reassuring as it sounds, including that you get to be your own boss.
Myth 1: It is gambling: Just like any other business, you must have a reasonable risk-return expectation in mind. Wealth creation is a slow and steady process.
Myth 2: There is the risk of sudden declines:
Yes, the stock market is volatile. Volatility can work in your favour if the trading actions are done with understanding and conviction. It provides an opportunity to buy good companies at reasonable prices.
Myth 3: It is only for experts: It takes time to master a skill and
so it is in the case of stock markets. Individual investors are the largest participants in the stock markets.
Things to bear in mind before starting out on this career path:
Read as much as you can in order to stay ahead.
Interact with like-minded people.
Be a part of community groups and forums that engage in thought-provoking discussions.
Be slow and steady. Do not invest all your funds at once.
Build your own conviction.
Always conduct your own research before risking your capital.
Risk management is supreme.
The importance of risk management cannot be stressed enough.
Remember to take advantage of lifelong learning opportunities to maximise your growth potential. When there are extra training opportunities or courses offered by your employer, attend them to keep up with the latest trends within your field.