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The Five Biggest Stock Market Myths

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Source 1:
(The Five Biggest Stock Market Myths, 2014, The Five Biggest Stock Market Myths Available at: http://www.investopedia.com/articles/02/061902.asp)
The article outlined different myths of about investing and explained how they are not true.
Investing is the same as gambling is one myth. Investing is buying shares in a company which represents ownership of that company, which means the investor will gain part of the company’s profit. Gambling on the other hand takes money from the loser and gives it to the winner.
The stock market is only for the brokers and rich people. No one including brokers can predict what the markets are going to do furthermore the internet has opened the market to the public as all the data and tools what were previously only available to brokerages are …show more content…

“Fifty-seven percent of survey respondents said they are afraid of dying, while 62 percent are afraid of investing in the market and 83 percent of people are afraid there will be another financial crisis.”( Chatzky 2014) But the study also revealed that a small number of people use financial advisers. Dr.Micheal Klein (psychologist) says this behaviour is typical when it comes to fear and anxiety. People deal with anxiety by avoiding the issue; in this case they avoid the stock market. The anxiety and fear towards the market can also be a cause of the market crash in 2008. For many this was a traumatic experience and they will carry this memory for ever. The study believes that the memories will also cloud people’s judgment about the market; they are likely to see red flags rather than the fact that as a whole investing is good, no matter how much evidence proves that investing is good. The study suggests that one way to overcome anxiety and fear is to slowly expose yourself to your fear, i.e. investing a small amount at first or getting help from a financial adviser you can

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