Even you must have come across these 'facts' many times but most of the experienced traders and experts do not support the so-called facts.
These, so called trading tips manage to stifle your trading with their monstrous powers promising fake to earn high profits for you.
Still being untrue, they are believed by most of the men in the trading world.
Hence, for those who seek to make profits on practical facts, here are some uncovered true statements.
oLike most of the people feel stock trading is next to gambling.
This gambling association with trading stocks is the most common myth that both investors and layman come across.
Most of the beginners invest with an intention to make money overnight in stocks and then may be leaving it aside.
However, this is why almost 90% of the traders lose to stock market.
The truth behind this gambling lies in the fact that the stock market is just like another business with raised risk and earning factor.
Unlike other business terms.
It also needs due care, time and sincerity for better returns.
However, as the stock market needs much at stake, hence, the returns are better than any other business.
For those who like to trade safe earn decent returns on different investments made.
In other words, share trading needs handful of intelligence, guidance and calculations to make profits.
It is no near to gambling or a play on every full moon.
In order to earn profits, it takes a whole lot of sincerity and consistency.
oAnother major myth one may come across is regarding the selection of the company.
Most of the traders trade with the company who has monopoly in the market.
It is assumed that the stock from a company with monopoly has a guaranteed return.
However, this lies untrue in today's scenario.
Like Dell, in spite being a monopoly is ranked 25th when it comes to computer sales.
oDiscussing the selection of the company for buying and selling of stocks, another myth persists that a company with high net profits is the best deal for profits.
However, this is also not a guaranteed return card.
The company who bags better rate of returns is the best to invest as they assure the traders of better performance each year.
Here the best example to be taken is again for the company Dell.
It has been noticed that net profits for Dell Company has increased from 5 to 7.
5% from 1990 to 1999.
Though the net profit increase may not score on financial cards but it assures high rates on investment plans, thus, benefiting the investors.
oStocks soaring high would experience a fall.
If this is what you think then definitely you are going to lose handsome amounts.
The gravitational rule does not apply to the stock's world.
For example Berkshire Hathaway company's share went a leap to 10,000$ from 6000$.
Like always, most of the investors who waited for the fall ended up losing on subsequent 70,000 on subsequent 7 years on each share.