Top 5 Reasons To Change Your Perception On Stock Market

Stock Market, the name itself is enough to shoo most people away. There are people who, for no good reason, have made up their minds that stock market is not for them. In India, out of 1.3 billion population only 2% people invest in equity market. The reason is lack of awareness. Also, there are various myths which are still prevalent in society which, to a large extent, have prevented people from investing in stock market. Heres 5 general perceptions of 98% of our population which can prove to be a golden opportunity for you to earn big.

1 - It's A Gamble, Stay Away From It!

This is the most common myth. Interestingly it comes from people who have no understanding of stock market. Truth however is diametrically opposite, by no means can the stock market be equated with gambling. One has to do systematic research and analysis before investing in any particular stock. If you study the careers of famous investors, namely Warren Buffett, you will find that extensive thinking of the business and product is carried out before investing in any stock. In the long run, stock market always rewards those who choose the right stocks.

2 - Stock Market Is A Rich Mans Game

Wrong! Stock market presents equal opportunity for all the citizens regardless of their income or class status. Let's put things in perspective. Stock market is a medium of investment which in due course provides handsome results. It's true that many rich people and High Net-worth Individuals (HNI) invest in stocks but the doors of stock market are forever open to anyone who wants to invest.

3 - You Have To Be An Expert To Invest In Stock Market

Although it is imperative to know the basic nitty-gritty of market so to assess the stocks like share price, market capital, P/E ratio, etc. But this is very basic, just scratching the surface, and to be honest, it's more than enough for individual investors. The only catch is it takes a lot of time and good analytical skills to find good, undervalued stocks. However, there are Stock Advisory firms like Niveza India Pvt Ltd who have seasoned research analysts who do the tedious work of meticulously researching and analysing stocks on various parameters to suggest the winners.

4 You Have To Take Big Risk To Gain Big

You can't be more wrong. It goes without saying that there is certain amount of risk involved in stock investment but it's untrue that only risky propositions yield big profit. It might, it might not. Nobody has proved this notion wrong better than Warren Buffett. He once famously said - Risk comes from not knowing what you are doing. What he meant was if you are sure that the company you have invested in is good and sustainable it will be profitable sooner or later. You just need to be patient enough to wait for that time to come. So where's the risk?

5 What Goes Up, Comes Down

This one is really funny. The general laws of physics are not always applicable on stock market. Just pull up the details of any blue-chip stock e.g. Asian Paints, MRF Limited, TCS, Infosys and you will realise that the truth is exactly opposite. These stocks have been on the upward trend for a considerable period of time. Over the years, investors of the said stocks have multiplied their wealth manifolds. It's true that stocks do fall but the key to success is to choose the right stock. You can do it yourself or subscribe to a good stock advisory firm which will find reliable stocks for you.