Five Misconceptions About The Industry Of Stocks

industry of stocks
(photo source: money crashers)

The industry of stocks is complicated. It’s also more complicated to the eyes of those who are not really familiar with it. There are a lot of misconceptions and myths that is why others are afraid to invest in stocks. If you are one of those people, you’re in for a treat. The industry of stocks is not as cluttered and scary as you think.

Here is a collection of misconceptions about stocks as stated by MOBE:

  1. Only For The Rich

Mobe said that this may have been the case once, particularly with regard to high broker fees. But due to the advent of online trading, the price per transaction is far lower today, with the value as little as $4.95. Anyone with an internet connection, an online trading account, and a little bit of money can get started.

  1. Requires Knowledge and Experience

Here’s the fact according to Mobe: you don’t need to know everything or have experienced at all before starting out. Stock markets have changed and developed since its inception in 12th century France. Keep in mind that you can always start from where you are.

  1. Great Way To Make Money Faster

If you’re a capitalist investing in foreign currencies or buying and selling millions of shares of a particular stock at a time, a small rise in value can pay considerable sums quickly. But anyone who’s new to stock market investing is never going to be playing at that level. Anyone who has ever made any money investing in the stock market has had to observe and learn how the market moves before they start investing actual money. One of the best ways to do this is by paper trading. This is all according to Mobe.

  1. It’s Like Gambling

Another from Mobe is this, when you purchase a share of a company’s common stock, you receive something of value. Your money buys you a small percentage of that company. You then have a claim; however small, on that company’s assets. Everyone hopes the stock they purchase will increase in value; but even if it decreases, it still retains some value. There is always a potential there.

  1. The Forecasts Of Stocks Are Reliable

As per Mobe, market forecasts are not 100% reliable. When you begin to learn about the stock market, you will see how events in a particular industry or the world, in general, can affect market activity and the values of stocks or certain sectors thereof.

Author Bio: Mark Aldrin Hipolito is a daytime writer at FP Markets, one of the most successful and established forex providers in the world. He writes to help people get interested in the world of trade markets.

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