Amazines Free Article Archive
www.amazines.com - Thursday, December 12, 2019
Read about the most recent changes and happenings at Amazines.com
Log into your account or register as a new author. Start submitting your articles right now!
Search our database for articles.
Subscribe to receive articles emailed straight to your email account. You may choose multiple categories.
View our newest articles submitted by our authors.
View our most top rated articles rated by our visitors.
* Please note that this is NOT the ARTICLE manager
Add a new EZINE, or manage your EZINE submission.
Add fresh, free web content to your site such as newest articles, web tools, and quotes with a single piece of code!
Home What's New? Submit/Manage Articles Latest Posts Top Rated Article Search
Google
Subscriptions Manage Ezines
CATEGORIES
 Article Archive
 Advertising (133321)
 Advice (160962)
 Affiliate Programs (34735)
 Art and Culture (73690)
 Automotive (145680)
 Blogs (75057)
 Boating (9840)
 Books (17218)
 Buddhism (4125)
 Business (1328593)
 Business News (426311)
 Business Opportunities (366264)
 Camping (10962)
 Career (72734)
 Christianity (15844)
 Collecting (11637)
 Communication (115054)
 Computers (241956)
 Construction (38997)
 Consumer (49681)
 Cooking (17061)
 Copywriting (6567)
 Crafts (18204)
 Cuisine (7538)
 Current Affairs (20388)
 Dating (45780)
 EBooks (19687)
 E-Commerce (48204)
 Education (185249)
 Electronics (83499)
 Email (6392)
 Entertainment (159832)
 Environment (28937)
 Ezine (3039)
 Ezine Publishing (5446)
 Ezine Sites (1550)
 Family & Parenting (110900)
 Fashion & Cosmetics (196390)
 Female Entrepreneurs (11842)
 Feng Shui (130)
 Finance & Investment (310274)
 Fitness (106141)
 Food & Beverages (62868)
 Free Web Resources (7938)
 Gambling (30225)
 Gardening (25108)
 Government (10513)
 Health (629557)
 Hinduism (2205)
 Hobbies (44044)
 Home Business (91557)
 Home Improvement (251362)
 Home Repair (46138)
 Humor (4823)
 Import - Export (5453)
 Insurance (45130)
 Interior Design (29554)
 International Property (3485)
 Internet (190990)
 Internet Marketing (146338)
 Investment (22825)
 Islam (1167)
 Judaism (1356)
 Law (80490)
 Link Popularity (4591)
 Manufacturing (20842)
 Marketing (98779)
 MLM (14136)
 Motivation (18213)
 Music (27005)
 New to the Internet (9479)
 Non-Profit Organizations (4048)
 Online Shopping (129617)
 Organizing (7803)
 Party Ideas (11856)
 Pets (38079)
 Poetry (2234)
 Press Release (12674)
 Public Speaking (5618)
 Publishing (7523)
 Quotes (2407)
 Real Estate (126625)
 Recreation & Leisure (95279)
 Relationships (87563)
 Research (16158)
 Sales (80323)
 Science & Technology (110222)
 Search Engines (23454)
 Self Improvement (153102)
 Seniors (6232)
 Sexuality (35942)
 Small Business (49286)
 Software (82996)
 Spiritual (23465)
 Sports (116081)
 Tax (7658)
 Telecommuting (34066)
 Travel & Tourism (307422)
 UK Property Investment (3121)
 Video Games (13428)
 Web Traffic (11727)
 Website Design (56830)
 Website Promotion (36569)
 World News (1000+)
 Writing (35770)
Author Spotlight
ALFRED MEARS

Former English Teacher; Musician (20+ years); Freelance Writer ...more
SHOVON JOARDER

Shovon Joarder has been working as Freelance Marketing Project Manager for over four years. He also ...more
ADRIAN JOELE

I have been involved in nutrition and weight management for over 12 years and I like to share my kn...more
BELINDA SUMMERS

Belinda Summers works as a professional consultant. She helps businesses increase their revenue by l...more
CACEY TAYLOR

Im just a man who likes to be happy and see others happy. Im into home business, sports, family, and...more


5 Dangerous Stock Market Myths Debunked by Ramalingam K






Article Author Biography
5 Dangerous Stock Market Myths Debunked by
Article Posted: 08/09/2017
Article Views: 300
Articles Written: 101
Word Count: 899
Article Votes: 0
AddThis Social Bookmark Button

5 Dangerous Stock Market Myths Debunked


 
Finance & Investment
A financial meltdown, a depressed business environment, a sudden fall in share market prices- all these phenomena are a part of any economy. These phases affect all those who are closely linked to the stock market. Such happenings give rise to an environment where myths are born. Myths are commonly-held beliefs which are in reality false. In the current context it refers to certain misconceptions about the stock market which can easily induce a new investor to act in a manner which is in detriment to his interests.

Myth I: Investing is equivalent to gambling

Nothing can be further from truth. Investing and gambling are perhaps as similar in nature as a teetotaler and a drunkard. The foundation of investing is based on hard facts which are backed by research and data. Investing is about owning stocks which in turn means owning a part of the business. A good performance by the organization results in a reward for the investor, in the form of profit sharing. Since the market is in a state of constant flux and the business environments constantly change, stock prices move up and down.

The fundamentals of the organization and its performance in the changing market condition are the index to the stocks resilience. In the long run the true worth will be reflected in its share price. Investing takes into account these factors in a systematic manner and is in absolute contrast to gambling which is a zero-sum game where one person’s loss is another’s gain. Investing is about growth while gambling is unproductive.

Myth II: Stock Market is for Researchers and Institutional Investors

It is a strong feeling among many people that stock brokers are privileged to have a lot of well-researched information and so can predict the market turns accurately. This is an imprecise premise because market predictions are never entirely accurate and as far data regarding the market are concerned, the internet has opened up a storehouse of information.

Individuals are in a better situation as compared to institutional investors who are under constant pressure to turn in profits in every quarter. An individual investor can think long term. Short term setbacks are likely to even-out in the long run and thus provide more stability to the investment.

Myth III: Fallen Angels will soar high again

The amateur investor is often influenced by the myth that any stock which is at its 52-week low is a good buy. Nothing can be more devastating than believing and implementing this notion. An old Wall Street adage is most appropriate in this context “Those who try to catch a falling knife only get hurt”. It is often seen that investors prefer to put their money in stocks which have fallen spectacularly over a period of time, instead of buying into those businesses whose fundamentals are strong but priced low. Shares of companies which have shown a stable performance over a period, say 52 weeks, but are priced at the same point as the one which has fallen sharply is definitely a better place to invest.

Buying a share at its low-point on the bare assumption that it will recover is not a healthy practice. This is different from value investing where the actual price of the share is trading below its intrinsic value and is expected to come good after market corrections occur.

Buying such stocks based on the expectation that it will once again touch its peak can clean out an investor off his entire holding.

Myth IV: Stocks which go up are bound to come down

The financial market is not driven by the laws of physics. What goes up might not be forced back by the gravitational pull. There are many stocks which has remained consistent over a period of time and has also been able to weather the recession. If you are waiting for corrections in those stocks to buy at a lower rate, you will miss the current price and it may move up further and you may lose an opportunity.

Stock prices are a reflection of the company and it is always true that stocks undergo correction. However, it is important to scratch the surface and look beneath so that the investor has a fair idea about the standing of the company before arriving at a decision.

Myth V: A little knowledge is better than none

The proverb “Empty vessel sounds much” is a relevant one in the context of the money market. While it is true that something is better than nothing, half-knowledge can be more detrimental than helpful and so it is always advisable to be thorough about the subject before venturing into the market. If there is a paucity of time and inclination, it is better to opt for an advisor who will ensure that the money is safe and the investment is right.

Conclusion

At the expense of sounding repetitive it is always better to be “safe than sorry”. What appears to be true may not be so. A half-baked cake might be mildly injurious to your health but investments made on the basis of half-knowledge can deal a body blow. The author is Ramalingam K, an MBA (Finance) and Certified Financial Planner. He is the Director and Chief Financial Planner of Holistic Investment Planners (www.holisticinvestment.in) a firm that offers Financial Planning and Wealth Management. He can be reached at ramalingam@holisticinvestment.in

Related Articles - stock market, share market myth,







Email this Article to a Friend!

Receive Articles like this one direct to your email box!
Subscribe for free today!

 Rate This Article  
Completely useless, should be removed from directory.
Minimal useful information.
Decent and informative.
Great article, very informative and helpful.
A 'Must Read'.

 

Do you Agree or Disagree? Have a Comment? POST IT!

 Reader Opinions 
Submit your comments and they will be posted here.
Make this comment or to the Author only:
Name:
Email:
*Your email will NOT be posted. This is for administrative purposes only.
Comments: *Your Comments WILL be posted to the AUTHOR ONLY if you select PRIVATE and to this PUBLIC PAGE if you select PUBLIC, so write accordingly.
 
Please enter the code in the image:



 Author Login 
LOGIN
Register for Author Account

 

Advertiser Login

 

ADVERTISE HERE NOW!
   Limited Time $60 Offer!
   90  Days-1.5 Million Views  

 

Great Paranormal Romance


STEPHEN BYE

Steve Bye is currently a fiction writer, who published his first novel, ‘Looking Forward Through The...more
GENE MYERS

Author of four books and two screenplays; frequent magazine contributor. I have four other books "in...more
LAURA JEEVES

At LeadGenerators, we specialise in content-led Online Marketing Strategies for our clients in the t...more
SUSAN FRIESEN

Susan Friesen, founder of the award-winning web development and digital marketing firm eVision Media...more
STEVERT MCKENZIE

Stevert Mckenzie, Travel Enthusiast. ...more
TIM FAY

I am not a writer nor am I trying to become a writer. I am an average person with average intelligen...more
MICHAEL BRESCIANI

Rev Bresciani is the author of two Christian books. One book is an important and concisely written b...more
KIRAN KAUR

Kiranpreet (Kiran) Kaur, D.D.S., who received her Doctor of Dental Surgery degree from the prestigio...more
STEVE BURGESS

Steve Burgess is a freelance technology writer, a practicing computer forensics specialist as the pr...more
JOANNA MORGAN

Joanna Morgan has a huge passion for making money online from home and enjoys traveling around the w...more

HomeLinksAbout UsContact UsTerms of UsePrivacy PolicyFAQResources
Copyright © 2019, All rights reserved.
Some pages may contain portions of text relating to certain topics obtained from wikipedia.org under the GNU FDL license