Picture this: You’re leaving the office after a long day at work when a masked man puts a gun to your head and says, “Tell me how I can make money from stock market investing.”. What do you say?

Do you rehash any of the ideas that Warren Buffett, Wells Fargo, and all the other titans of financial industry have been promoting? Or do you repeat one of the many stock market myths that are costing investors money right now?

If you’ve ever wondered why some investors make money in their sleep while others don’t break even, you’ve come to the right place. Read on to learn about three common investing myths that are way past their expiration dates.

1. You Just Need the Right Stocks

With stock market investing, picking good stocks is only half the battle. So much so that many investors would say that your money management strategy is more important than your approach to choosing companies. Here’s why:

Let’s say that you’ve purchased a bunch of shares on 10:1 leverage. The pickup might seem awesome while share prices are trending in the right direction. But if anything goes wrong, your account balance could quickly drop to zero.

Even if you buy at the right time, investments can still be unprofitable. That’s why the best stock market investors are often expert number crunchers.

2. Investing Is for the Rich and Brilliant

Whenever you hear about someone who is crushing it on the market, it’s easy to say things like, “She was rich, to begin with!” or “That guy understands the market better than the rest of us.”. But truthfully, anyone can experience the financial benefits of the market while learning about portfolio diversification and smart investing practices.

And with trading apps and budget-friendly brokers often allowing people to trade on fractional shares, you don’t even have to go the traditional route with brokers who have massive, five-figure minimum deposit requirements. To see an investing option like this in action, you can check out https://www.monexsecurities.com.au/investing-in-usa-stock-market/.

All you have to do is sign up and make a deposit. After that, you can start purchasing stocks with your phone.

3. Stocks Never Go Down

If you followed the GameStop saga while observing the long-term returns of the S&P 500, no one would blame you for thinking that the secret to profitable investing is to simply hold on to stocks. But in reality, holding onto unprofitable shares can actually drain your account if you’re not careful.

You see, not all stocks are created equal. Sometimes businesses are in dying industries or are suffering the fallout of outdated thinking and terrible financial decisions.

Even excellent stocks will have ups and downs. And when stocks are dipping, you don’t want to panic sell at the first sign of trouble. But it’s equally important for investors to recognize when it’s time to cut their losses.

Should You Give Stock Market Investing a Try?

If phrases like “financial freedom,” “passive income,” or “early retirement” are appealing to you, then stock market investing could be your ticket to the top. But for all the positives associated with purchasing stocks, smart investing is the key to achieving your personal ambitions through the market.

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