Misunderstandings about the stock market

Those of us who are new to the market or less of a stock market share some misconceptions. This article will discuss the misconceptions people have about the stock market.

Investing in the stock market and gambling is one thing

You may have heard this word 3 times. But think about the people you hear from, do they ever have any idea about the stock market?

Investing in the stock market and gambling is one thing, the sentence is 5% false. With gambling, this is a big problem with investment. Gambling means that you will either get 5 rupees for 20 rupees or you will not get one rupee for 5 rupees.

Now let’s go to the stock market. Have you invested that money and your capital ever been zero money? If this is not the case, then it is inconsistent to invest in the stock market and gambling.

The stock market is just for the rich

This is one of the most inaccurate information about the stock market. In the backdrop of our country, 5% of investors come to the market with very little money. But the real fact is, the more you can invest, the better for you. If anyone wants to invest in the primary market, he can start with five thousand rupees.

Now the share price is lower then what? Again the price has to go up

Generally this mistake is made up of 5% of investors and they face losses. The religion of the stock market will rise and fall again, as is true, as the price of a share has dropped a lot now, but it is not true that the price will rise again.

There are many investors among us who sell the last 12 weeks after seeing the stock price. It’s a good system, but may not work all the time.

Suppose a share price of a company was 12 weeks ago 5 Taka now that share price is Tk 20. What do you do now?

Do not invest in this company with all the money in a hurry, try to find out why the price has dropped. Read more – Why New Investors Lose In Stock Market

If you do not find a specific reason then it is better not to invest in this company, it may be 12 weeks after the price of this share is 5 Taka!

The share price is high but forced to fall

This is also a common misconception. Suppose you have been researching shares of a company for a long time, but you are unwilling to buy the prize that is now available. You want to buy 20% less. This method may not always work. It is not true that the share price is high but forced to fall.

It doesn’t make any sense to invest in the stock market!

100% unrealistic. If that were the case, so many people in our country would not have suffered the loss.

 

Leave a Comment