Stock Market Myths

Wall street is a financial market in which stocks, bonds, and other financial instruments are bought and sold. This market can seem intimidating and complicated to those who are not familiar with it. In addition, the image that has been created around the stock market, thanks to movies and the media, has created a series of myths and legends that have damaged its reputation. This, added to ignorance, can take us away from this beneficial world.

An endless number of opinions that often come from people with little knowledge, understanding or no relation to the stock market, can leave us skeptical when it comes to starting. Since its start in 1531 in the Netherlands and especially since 1865 with the creation of the New York Stock Exchange, countless historical events have arisen, such as the crash of 1929, the first and second world wars, the bankruptcy of Lehman Brothers, or the recent health crisis, which has led countless film productions to focus on the negative aspects, causing distrust in the small investor. In the following lines I want to demystify common beliefs about the stock market, in order to understand the stock market more closely.

The stock market is just for richest

This is one of the biggest myths. Today the stock market is available to everyone with the use of computers and the Internet. There are multiple investment platforms and you can start with a small capital. Everyone should learn to invest and make their savings profitable.

The market It's a casino

Another classic myth. It's a casino if you don't know what you're doing, if you do, stop being one. Training is essential in any subject that we don´t control.

Investing in the stock market is expensive

Many years ago, investing in the stock market ceased to be something within the reach of a few. Currently there are a large number of brokers with excellent commissions and without the requirement of a minimum investment as in past years.

It's just for smart people

False, to invest you only need to know how to add, subtract, divide, multiply but you need to use common sense.

You can't beat professional investors

This is another myth that is often heard. Professional investors generally invest not to lose, not to get the best possible return, it has to look good in the eyes of their bosses and investors, so they play it safe. Furthermore, most professional investors do not have their personal assets invested in the funds they manage.

Wall Street is full of screaming people trading stocks

Another myth quite attached to the movies. False, today those buildings on Wall Street are empty and everything is done through computers.

I have seen a course to invest in the stock market and in a short time I can earn a lot of money

False, the stock market is a good way to earn money, but in the long term, using compound interest. There is a lot of smoke selling going around.

Make a salary from the stock market

False, the market doesn´t give salaries. The stock market goes up and down, volatility, and if you just need that money when it's down, you'll probably have to sell at a loss. You can live on the stock market, but with a large and well-managed estate.