Common Misconceptions About Stocks
When thinking about stocks, there are many misconceptions one may have about investing in them. Usually, mistakes from misconceptions are easily corrected, but when money is involved in the mix, these mistakes can lead to big losses. This article is to help you ensure that you do not have these disastrous misconceptions.
The first and most glaring misconception about investing in stocks is the idea that you can have overnight success. When your financial portfolio is well-established, and you made good decisions, there will be instances when you could earn hundreds on a daily basis. But doing so requires a lot of market study and patience. And if you try to get a quick buck, then your capital will burn out right before your very eyes.
This brings me to my next point. In trying to earn big fast, some people invest everything they have in one and only one stock. This is not a horse race, and you don't have to bet it all in one horse! You see, even the best experts in stocks will suffer the occasional burnout; wouldn't you rather have a small percentage of your investment suffer from the loss, rather than have all of them disappear in one bad day?
The next one I'll talk about isn't really a misconception; but it's not advisable, at any rate. There's the idea of being able to maneuver stocks without consulting a qualified broker. While, yes it is possible to, it's not a good idea to do so. Trading is serious business, and the experience from an old broker will help beginning investors make bad choices; at the start, anyway.
Finally, I would like to mention that the current economical instability does not mean that this is the worst time to invest in stocks. On the contrary, it may be a good idea to buy stocks while they're at their cheapest. It could be a good long term investment, but like all things must be considered carefully. - 23200
The first and most glaring misconception about investing in stocks is the idea that you can have overnight success. When your financial portfolio is well-established, and you made good decisions, there will be instances when you could earn hundreds on a daily basis. But doing so requires a lot of market study and patience. And if you try to get a quick buck, then your capital will burn out right before your very eyes.
This brings me to my next point. In trying to earn big fast, some people invest everything they have in one and only one stock. This is not a horse race, and you don't have to bet it all in one horse! You see, even the best experts in stocks will suffer the occasional burnout; wouldn't you rather have a small percentage of your investment suffer from the loss, rather than have all of them disappear in one bad day?
The next one I'll talk about isn't really a misconception; but it's not advisable, at any rate. There's the idea of being able to maneuver stocks without consulting a qualified broker. While, yes it is possible to, it's not a good idea to do so. Trading is serious business, and the experience from an old broker will help beginning investors make bad choices; at the start, anyway.
Finally, I would like to mention that the current economical instability does not mean that this is the worst time to invest in stocks. On the contrary, it may be a good idea to buy stocks while they're at their cheapest. It could be a good long term investment, but like all things must be considered carefully. - 23200
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posted by X - Men @ 4:25 AM
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