Debunking Myths About Stocks And Shares

By 06/25/2020 No Comments
myths about stocks and shares

It is safe to say that the word ‘investing’ has a stigma around it and if you have never invested before then it is easy to think that it’s something you’ll never be able to do. Whereas, in fact, investing is much more accessible and actually much easier than the majority of people realise and it is well worth looking into further. 

When researching investing, in particular stocks and shares, you can guarantee that you will come across a lot of incorrect information. There are many myths surrounding investing in stocks and shares, and these are often enough to put people off even trying. To help people realise that investing is for everyone, our team here at Financial Investing and Trading have debunked some of the most common myths. 

“You need to be rich to invest properly.”

This is probably the biggest myth about investing of any kind, especially when investing in stocks and shares. Whilst there may have been some truth in this statement many years ago, in today’s modern age, it simply isn’t true. 

Anyone can learn how to invest in stock and shares no matter how much disposable income you have. From as little as £1.67 a day, which is less than a takeout coffee, you can start contributing to an investment savings scheme. 

“You have to be an expert to invest.”

Lots of people assume that you can only invest if you’re a businessman with years of experience and knowledge in investing. Again, this couldn’t be further from the truth, investing in stocks and shares can be successful for anyone. 

Whilst you may not understand everything straight away, once you have got your head around the basics, you can start to invest. There are plenty of easy online courses available that can help you create a strategy that works for you. 

“It is far too risky for families to invest.”

This is a difficult one, it is important for anyone learning how to invest in stocks and shares to know that there are risks involved. However, it shouldn’t be enough to put you off investing and often, the risks are worthwhile taking. 

Not all ways to invest will come with the same amount of risks, and you can simply choose something you feel comfortable with. It is important to note that by taking a calculated amount of investment risk, you give your money much more potential to grow. 

“Investing is essentially gambling.”

When people are against investing as a way to build future financial security, you may hear them say that you’re gambling with your money. But, simply put, this is a myth and the two are actually quite different. 

There’s no disputing the fact the stock market can change and the value of your investments can go up and down, and this is out of your hands. However, the way that you manage your investments and the control you have over them is very different from that of a bet. 

“You will be locking your money away if you invest.”

Often, people will confuse the fact that stocks and shares are frequently used as long term investments with money being locked away. Whilst not all investments are the same, lots of them don’t have a fixed period of time that you have to invest for. 

Anyone new to investing shouldn’t confuse it with a savings account. Even if you have the ability to withdraw money, it isn’t always the best move to make and it is worthwhile having a different savings account on the side for emergencies. 

Investing in stocks and shares 

Hopefully, now you know that the majority of what you have heard about investing or what you read on the internet simply isn’t true, you can begin to start investing yourself. It goes without saying that there are numerous benefits to investing in stock and shares and when you know what you’re doing, you really can reap these benefits. 

If you would like to find out more about how to invest in stocks and shares, visit the Financial Investing and Trading website today. We help people all over the UK create future financial security for themselves and their loved ones using stocks and shares. We have a simple step by step online course available that can teach you all of the basics you need to know and provide you with enough to get you started when investing in stocks and shares. 

© 2019 Financial Investing Trading

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