5 Indian Stock Market Myths, Debunked!

5 Indian Stock Market Myths, Debunked!

The article attempts to list down various myths, Indian people hold on the equity market.

For many, the stock market is the place to make huge money and for some it is a place where you generally lose your money. There is no doubt, the market holds endless fantasies, especially for people who dont know even the A of stock market investment, but wishes to make money. Such people hold and spreads several myths about the equity market investment.

Myth # 1 Stock market investment is like gambling This is perhaps the biggest myth people hold regarding the Indian market. This is the time when most people are putting at least some part of their monthly or retirement income in shares, such notions seem weird. While in gambling your returns depend on your luck, in equity market investment it depends on your speculation and ability to select the right stock. Your capability to select the right stocks at the right time and selling the stocks at the perfect time decides your fate and future.

Myth # 2 Stock market investment is for Richie rich Who said this? Despite a number of common individuals investing and trading in the market regularly, a group of people still believes that stock market investment is only for wealthy people. But the fact is that you can invest in the market with a very small amount also. There is no compulsion that you need to invest a very big amount of lakhs and crores. Whatever amount you can afford, you can do trading according to it and make money.

Myth # 3 Even a little knowledge is enough to trade stocks This myth may surely bring you down. There are so many examples in the market, who had little market understanding and made wrong investment decisions. Even a small mistake could cost more in the future. You need to have comprehensive domain knowledge. You can choose to learn trading through various online stock market game that are organized by virtually trading platforms.

Myth # 4 Stocks that are priced higher falls down soon This is another myth. Of course, if the stock is highly priced, even more than its value it will automatically come down. But if its potentially strong, there is rarely any chance it will come down.

Myth # 5 Shares that have gone down will rise immediately If the stock is potentially weak, it has less chances of coming up.

Remember, you cannot be a trading pundit, unless you practice. If you are genuinely seeking ways to learn trading and about the market, choose one of the many websites online that host competitive and real-time stock market game .