Common Misconceptions About Stocks
When thinking about stocks, there are many misconceptions one may have about investing in them. Usually, mistakes from misconceptions are easily corrected, but when money is involved in the mix, these mistakes can lead to big losses. This article is to help you ensure that you do not have these disastrous misconceptions.
The first and most glaring misconception about investing in stocks is the idea that you can have overnight success. When your financial portfolio is well-established, and you made good decisions, there will be instances when you could earn hundreds on a daily basis. But doing so requires a lot of market study and patience. And if you try to get a quick buck, then your capital will burn out right before your very eyes.
Now, on to my next point: When trying to earn big and fast, some people invest everything they have on the first good deal they come across. You don't have to put all your eggs in one basket! Even the best experts in stock will see the occasional loss of funds; it's a good idea to just see a small percent of your investment disappear. Wouldn't that be better than see them all vanish in one bad day? It can happen.
The next one I'll talk about isn't really a misconception; but it's not advisable, at any rate. There's the idea of being able to maneuver stocks without consulting a qualified broker. While, yes it is possible to, it's not a good idea to do so. Trading is serious business, and the experience from an old broker will help beginning investors make bad choices; at the start, anyway.
Last, I would like to state that the economy's current instability does not mean that this is not a good time to invest in stocks. On the contrary, now is a good time to buy up stocks when they're priced low. It's a long term investment, and a good one at that, but like everything else, must be thought about with care - 23208
The first and most glaring misconception about investing in stocks is the idea that you can have overnight success. When your financial portfolio is well-established, and you made good decisions, there will be instances when you could earn hundreds on a daily basis. But doing so requires a lot of market study and patience. And if you try to get a quick buck, then your capital will burn out right before your very eyes.
Now, on to my next point: When trying to earn big and fast, some people invest everything they have on the first good deal they come across. You don't have to put all your eggs in one basket! Even the best experts in stock will see the occasional loss of funds; it's a good idea to just see a small percent of your investment disappear. Wouldn't that be better than see them all vanish in one bad day? It can happen.
The next one I'll talk about isn't really a misconception; but it's not advisable, at any rate. There's the idea of being able to maneuver stocks without consulting a qualified broker. While, yes it is possible to, it's not a good idea to do so. Trading is serious business, and the experience from an old broker will help beginning investors make bad choices; at the start, anyway.
Last, I would like to state that the economy's current instability does not mean that this is not a good time to invest in stocks. On the contrary, now is a good time to buy up stocks when they're priced low. It's a long term investment, and a good one at that, but like everything else, must be thought about with care - 23208
About the Author:
Rick Amorey does not advice you to go for get-rich-quick schemes that are rampant on the Internet! With Emini Trading as your guide, you will learn a disciplined, solid methodology that will get you to consistently earn more and more with trading. Be a part of the Emini Trading System now!
posted by X - Men @ 1:36 AM
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