Myths Of Investing In Share Market

By Author: Vamsi Krishna
Total Articles: 27
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History provides enough proof that share market has been the biggest wealth generator for decades. Not gold, not real estate, not commodities, but it’s the share market that has earned patient and long-term investors great returns. The biggest reason is that shares are backed by real businesses that have benefited a lot from the spread of capitalism and the opening up of economies.

Anyways, all good things in life are also surrounded by a lot of myths – beliefs that negate the benefits of these good things. Share market investing is no different. There are hundreds of myths that sometimes cloud the benefits that share market investing provides to investors.

In this article, we will discuss the two most widely prevalent myths of investing in share market.

2 big myths of investing in share market

Myth #1: Investing is risky – We’ve heard a lot of people say, “I don’t invest in stocks. I find investing too risky!” This is a very common excuse from those who think they are better off without investing in the share market, and staying with the safety of bonds, and mis-sold investment products.

Well, ...
... if investing is risky, so is so is crossing the street, climbing a mountain, and driving a car. But we all learn these things with proper training and guidance, so why not investing as well?

The truth is that investing in share market isn’t risky. If you know the simple, fundamental rules of sensible investing, you will find it’s an enjoyable activity given that it can earn you great returns over the long run.

In fact, not investing in the share market is a big risk because you are not giving your money a chance to grow faster than that devil known as “inflation”.

Myth #2: It’s only for experts – This is one of the greatest myths or fallacies of investing in share market. Like people think that investing is risky, they also believe that it is the exclusive domain of the experts – the so called share market pundits like fund manager, analysts and business channel anchors. This is in fact the first excuse from people who have just lost a lot of money trading in shares.

But the truth is that you don’t need to be an 'expert' to make money from stocks. If only you know what the “experts” were advising investors at the peak of the share market in 2008 (when they were all bullish) and at the start of 2009 (when they were all bearish), you will know why 'i-need-to-be-an-expert-to-make-money' is such a big myth.

In reality, you just need some brain power, some time, and some effort to make money from investing in the share market. But that’s what you require in your high school education, not in PhD!

Just be the person you already are…use your brain a bit more, do your own homework on shares you are looking to invest into, and keep your emotions aside. If you can do this, you will be better than 99% of all stock market experts out there.

Conclusion

As you are wondering whether you can create wealth by investing in share market, be assured that you alone are the most capable (and trustworthy) person to handle your money. Now it’s high time you start believing this.

Author Bio

Ritish Kumar is a finance enthusiast and a keen observer of the Indian share market. In this series of articles, he talks about investing in stock market and staying profitable. share market, stock market