Debunking the Most Common Stock Market Myths That Exist Today

You want to build wealth, right?

Most people want to but have no idea how to do it, especially when it comes to trading stocks. Maybe they will talk to their family and friends in an attempt to learn, or they go online and search for help.

But neither method is a sure-fire way to trade successfully, especially when there is so much misinformation and myths out there.

Before you get started on your investment journey, here are some of the biggest stock market myths – and why they are just that, myths.

Investing Is Risky

One of the biggest myths about investing in the stock market is that it’s inherently risky.

While some investments are risky, not all are. Investing in the stock market isn’t the same as gambling.

Of course, there is some risk of investing in the stock market. But that risk is often exaggerated, perpetuated by people who insist that investing in the stock market is the same as gambling.

But even with some risk involved, you can offset some of that risk by creating a diversified portfolio.

You can do that domestically by investing in different types of stocks, or diversify even further by using a financial institution like Monex Securities that allows you to trade in international markets.

Finally, the stock market shows an overall pattern of growth over time. Yes, there are economic dips, but overall the trend is a growth trend.

You Need to Time the Market

There’s a saying, “Time in the market beats timing the market.”

Despite what some “experts” on social media may tout, no one knows what the market will do. The best route for investing is to stay the course long term and keep your money in the market.

Trying to follow the stock news daily and attempting to buy low and sell high takes a lot of time and effort, and the return often isn’t worth it. Instead, keep your money in the market. Instead of trying to time the market, spend that time making more money at work.

Remember, the overall trend with the stock market is one of growth.

Investing Requires a Lot of Money

Investing doesn’t require a lot of money. It doesn’t require a lot to get started, and it doesn’t require a lot to maintain.

If you prefer advice from a human, financial advisors will usually take a small fee. However, more online brokerages are using robo-advisors. They manage your portfolio automatically using algorithms, cutting out the middle man of a human financial advisor.

Fees for using robo-advisors are typically lower than they are for using a human advisor.

Bust Those Stock Market Myths and Start Trading

Now that you know what some of the stock market myths are, it’s time to start trading.

One of the biggest stock trading mistakes is to never start investing. While no investment is completely risk-free, the financial industry is highly regulated. With a little knowledge and a little money, you can get started building long-term wealth.

For more financial tips and tricks, including investment and retirement information, check out other articles in our Finance section.