Investing

Investors in the stock market myths

Today if you show a person and asked him “What do you do?” ‘I am investor. .- Automatically invest in stock your brain processes information and the first thing is that you think ahead to Gordon Gekko or Warren Buffett, a person much smarter than you and probably millions.

Some time ago we discussed some myths of the bag, as the myth of the people who were ruined by investing in the stock market, which we explained that if it did, it did not follow some simple tips to invest in the stock market or made serious errors investor.

Today we talk about some myths in the stock market investor, because sometimes confuse some terms that are often far removed from reality.

1. A stock investor is a person with a lot of money.

To invest in the stock market need only saved some money that you will not need the coming years. It is true that there is no minimum amount to invest in stock, but if you put only 100 € will probably lose money since the cost will eat the commission. With € 1.000 to 2.000 can start investing in the stock market perfectly.

However, it is clear that the more capital you have, the more money you can invest and therefore receive higher profits.

Investors

2. A stock investor is a person with many studies.

I’ve always wondered what career to study and learn invests in stock market mastery. At this point I want to be totally accurate so that nobody can say “throw people adrift.”

I have always separated the intelligence of a college degree, because one thing leads you to the other. A doctor is not smarter than a vehicle mechanic, although some people insist on saying yes. If we put both of them a test, the doctor would respond better to the question “How many muscles of the human body,” but the mechanic would respond better to other questions based on the motor world. One thing is for intelligence and other knowledge in any subject.

We will not deny that at the time of investing in a career full of knowledge in finance is not going to help you, but I will not say that such knowledge can not buy on your own and end up learning concepts that a university has never heard

I know investors who have held more than 30 years and when they speak with a financial expert, the terms as derivatives, futures, warrants or they sound like Chinese ETF. We will not say they do not know what they are, but do not quite understand and therefore do not take risks. For example, I do not understand the currency market, so when you can not swim, you better not go near the pools.

One thing is to invest in stock market and understand all the other innovative investment vehicles, which some of these are investment products that helped produce the crisis we now live.

3. Investor is being constantly investing.

Perhaps we have been engraved image of the films that show us some brokers who spend 24 hours a day “purchase! Sold!!!”

As a general rule that stock investors earned more money are those that less buying and selling orders release. You got the real example of several traders who threw 315 orders a year and have had far less profitable than others with 15 orders.

I would not say that the bag is a game where the more you play, the more you lose, since it is clear that I do not think any games of chance, but when you exceed chance in buying and selling orders you tend to lose as you yourself are using the bag as a game and every day are not good to play.

On the other hand can be a stock investor and have no value in the portfolio. Not necessarily have to have money invested, as in specific times, it’s best to clean your positions so that may occur while we assess the appropriate time and company to enter.

There are investors who invest a February 12th and until December 24 give no other orders. Anyone can be an investor, although it is clear that in the bag there are many types of investors, large, small sharks and conservatives.

In short: No studies are needed, but you need to have a minimal understanding of the factors that drive the bag. Some people get the message in 5 months, others take years and some never stop learning. The bag is not a game of chance, but bad luck could come to be present and could not do anything about it.

And finally, when I talk to investors or people who advise when investing in stock market, usually found with two types of people.

That tells you that under a particular method will make you a millionaire and it’s very easy to do.
Anyone who tells you it is very complicated and you will start losing money.
Neither is right, though neither is 100% wrong. Nor is it as difficult as some paint it or you’ll get rich if you have not already had a large sum of capital. Remember that before getting rich, three factors are labor saving and investment, and you can not move to the third or fourth stage without going through the above. The only secrets to get rich

Then there is the investor who every month get a 40% return on the stock. In this tell him to take a walk to get some air.