Investing and non-investing people have differing ideas about the stock market. Some have beliefs that sound silly for others. Meanwhile, there are also a lot of people who think they know the stock market downright to the core when in fact they’ve only scratched its surface. There are things that people get wrong about the Cryptocurrencies Ethereum. Here are some of them:
Wrong Belief 1: Investing in the stock market is gambling
This is one great misconception that makes people don’t want to invest their money in the stock market. Sometimes, it makes them don’t want to invest anything at all. Indeed, there are many people who think investing and gambling are two different terms for the same activity.
However, these two things are inherently different from each other. When you buy stocks, you are buying a part of the ownership in a company. That means you get some rights over the assets of the company. You also get to enjoy some portions of the company’s income or profits.
What happens is that people tend to forget the fact that the stock market isn’t just one investment vehicle. Basically, it allows you to own a company. And that in itself already makes it very different from gambling.
Gambling is a zero-sum game, which means one’s lost is another’s victory. It merely takes the money from someone and then gives it to another person. There’s no value created, which makes it all the more different from the stock market, which can let everyone enjoy wins.
Wrong Belief 2: You need to be a financial wiz
Many people avoid investing altogether just because they think they’re not savvy enough in accounting and in mathematics, without really checking if that’s true. The thing is, you don’t have to be genius just to be a Cryptocurrencies Litecoin investor.
True, you need to at least learn by heart some concepts. You need to know what really goes on in the stock market before you jump in. However, you don’t really need to dig very deep. As long as you know how to buy and sell a stock, you’re good to go.
Besides, brokers and financial advisors got your back. They can help you learn the ropes as you go through the process, meaning you don’t have to do thinking all by yourself.
Wrong Belief 3: The stock market is only for the big guns
If we were still living in the early days without internet and everything is old-fashioned, this may have been true. However, that’s no longer the case.
Long ago, you needed to be rich and wealthy before you can afford to invest in any financial market. You needed to pay a person to act as your broker. However, with the advent of the internet and various technological leaps in the field of finance, investing has become child’s play for those who have the guts to try their luck in the financial markets.