In the world of online trading, the investor’s tolerance in the face of the unknown is a shot of adrenaline that can boost up profits or losses. Nobody knows what’s the ideal time to invest or retreat from stock, but that’s what catches the potential buyer’s attention. Unfortunately, some individuals are too afraid to step into the trading game as the internet is flooded with all types of myths, scams, or misinformation. So, if you are a newcomer and want to trade stocks but don’t know what to believe anymore, you can read this article and find out if the myths are true.
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The Stock Market is Just a Game
Investing in the European stock markets or even international stock markets, isn’t a game of chance. Traders make their decisions based on their analysis of companies. To start trading, people can download the best trading apps like Robinhood, Acorn, SoFi Invest, or Webull. The next step is to select a stock of interest and buy fractions of it. Investors have to hold it, sell it or buy. This process should be done by analyzing the stock in-depth and not just buying randomly .Question being, how is this done?
An investor can start with market research to determine if a stock is or is not good for them. Shortlisting some companies and learning more about their annual reports, charts, and financials is the first thing to do. Understanding the company starts with plenty of questions like does it have a capable management team?Does this sound like a business? and what is driving other investors to buy shares? To get the answers, individuals can visit the official sites, and learn about their goals and visions. After that, it will be the time to check if there are any debts or red flags and finally analyze the future prospects.
Companies from various fields like banking, pharma and energy are listed on the stock market. When many investors buy shares on the best FTSE growth stocks or others, the prices will go up.On the other hand, when lots of holders sell the shares, the prices can drop. This is not a game, but a complex decision-making process of buying, selling, or holding fractions from all types of industries (also known as hedging).
Trading Stocks Requires Lots of Money
One myth that discourages investors is that they need lots of money, if not fortunes to start trading. People believe that investing thousands of dollars in a stock is the single way to earn. That is not true as you don’t need too much money to buy a share of a company to make profit. Some stock prices start under $10.00 for companies like LYG, ENIA, AEG, or TIE.
Not to say that there are lots of traders that will build fortunes step by step, with small investments. Even some businesses started empires from the ground, so it would not be impossible to get rich by putting small amounts of money in the stock market. As an example, the gambling sector of South Africa started from scratch and time after time, with small investments it boomed. It happened when gambling became legal and stabilized in 2008 by The National Gambling Amendment Act. So, lots of casinos appeared and many specialists shared their opinions about a live casino online in South Africa or other gambling pages. A comparison site will inform interested punters which casinos are properly licensed, what banking options are available such as Visa or Skrill, and what bonuses are available such as welcome and no deposit ones.
Only Rich Traders Can Access the Information
The rumor and the myth that only rich traders know what and when to buy and sell is common nowadays. First of all, the stock market is regulated by a local legislative framework and everyone has equal access to the information. A company will share the same data for every kind of investor, no matter if they are rich or not.
For instance, people can learn if the global stock markets slips on inflation or other regulation worries by checking companies’ websites and news. Info like this will always be public and accessible to everyone. It is fair for people to know if the stock may crash or grow in the meantime and what they can do with their investments. As mentioned earlier in the article, trading a stock implies knowledge, patience, and lots of research to have good results over time.
Anyone can get involved in the stock market as a person only needs an internet connection and a budget for trading.There is no need to be crazy rich to start your investor path or to treat this field like a game. Investors should simply have a budget, download an app and select the stock they will like to acquire. Then, they will have to learn more about each stock, look at statistics and buy or sell at the right time to make some profit.