FSIWallStreet.com
Guiding Independent Women To Stock Market Freedom

True/False – The Top 7 Stock Market Myths

 

In my various conversations with everyday people, I have discovered that there are many misconceptions about the stock market.  In order to grow, I believe in the importance of being open to learning new things.  So, once I discover that what I used to think about something is based on insufficient information, I open up to a new perspective and belief.

 

And I think it’s important to point out some of these misconceptions, because what I list below are some examples of how some people allow their mind to take them out of the game.  What do I mean by that?  Well, while our mind can be extremely powerful, it’s desire for security and resistance to change can also keep us from stepping out of the box to accomplish our goals and dreams.

 

 

1 - It takes a lot of money to start investing.

I hear this one a lot. Many people believe that it takes several thousands of dollars to begin investing or trading in the stock market.  Truth be told, I will show you how you can get started purchasing stock and even trading stock options for $500 or less. I will show you resources you can use to get started analyzing stocks for FREE. I will also show you an online broker website where you can trade for minimal commissions and NO required minimum account balances.

 

 

2 - Trading in the stock market is too risky.

I hear this one ALL the time, especially from folks who had money in the markets in 2000 after the dot com bust.  And I was one of them. I lost money in the markets during this period too.  But, the most important step I had to take was to determine how I could not repeat the same mistake again. I had to take some responsibility for my situation, so that I could learn from it and make wiser financial choices in the future. Something in me said that I could still make money in the stock market, AND that the key to doing so was training. 

 

Risk management is extremely important when investing in any business.  That includes real estate, any traditional business venture such as a restaurant or clothing store, and the stock market.  I cannot stress enough the importance of having a clearly defined exit point BEFORE you even enter a trade.  And once you select this exit point, follow it.  Don’t make the #1 mistake of amateur investors – don’t be ruled by your emotions.  Trade based on a proven system.

 

 

3 - Trading or investing in the stock market is like gambling

Some people believe that trading in the stock market is like gambling.  Truth be told, trading in the stock market is only like gambling when you don’t use a systematic approach.  So for most people, I’m sad to say, it is not merely “like” gambling…it IS gambling! Only this time, your retirement or family’s future is on the line, not just the cab fare, to take you from the casino back to your hotel in Vegas. This used to be the case for me when I had very little knowledge about the stock market and all I had was my 401k. Now that I trade and invest based on a systematic approach, the odds are definitely in my favor that I will be profitable and continue to be into the future.  And for those of you who don’t want to trade, but still want to be able to monitor the funds you select in your 401k, then this system can work for you too.

 

 

4 - You have to be good at math to trade in the stock market.

The key to trading successfully in the stock market is using a proven system.  My mentor, Dr. Stephen Cooper, who has over 20 years of experience trading in the markets, has developed a proven trading system.  This is the system I will show you when you register for one of my trainings.  I’ve been trading in the stock market with his system for over two and a half years, and I have had tremendous success.  But my success is not about me.  It’s about the trading system I’ve been using that Dr. C, as he likes to be called, created.  Yes, analyzing stocks using this system involves looking at charts, but the calculations are minimal, and I’ll show you how to do all of this.  The trading system consists of a template, which answers the necessary questions with clearly defined steps.  The template will show you how to determine what company’s stock to trade as well as your entry and exit points of the trade. 

 

 

5 - You have to be very smart to trade in the stock market.

I have found that the more formal education you have, the harder it is to be successful in the stock market.  Most people with a lot of formal education tend to think too much.  They try to read something into the stock market that isn’t there.  They think they can outsmart the market.  Well, the stock market doesn’t care what you think.  You have to let go of your status.  And quite frankly, the folks who don’t have a lot of formal education tend to be most successful at trading in the markets using this trading system, because they are less likely to have status issues.  Do you know what status stands for?  Still Too Arrogant To Understand Success.  Once you start being successful using this trading system, the day you start to believe that it’s about you is the day you start a losing streak of trades.  I know so because I have done so.  But the good news is I’ve since been resurrected, and I am here to share my stories and what I’ve learned from my experiences.

 

Speaking of status, in my Wealth Wisdom e-book I talk about why the middle class is another way of being broke at a higher level. I will gladly send you a free copy when you e-mail me at FSIWallStreet@aol.com

 

Many people say “I’m going to beat the market.”  You see it in stock market advertisements all the time.  This is not a competition.  I have found that the most profitable trades come from working with the market and not against it.  Once again, the stock market doesn’t care what you think.  It’s going to do what it’s going to do.  The key is to learn different strategies so that you can respond to the different market conditions: bullish, bearish, or neutral.

 

 

6 - You can only make money when the stock price goes up.

This is one of the most common myths of all.  Most people believe that you can only make money when the stock goes up.  I am here to tell you that you can also make money when the stock goes down, or when the stock stays the same, or moves sideways.  I’ve done all three.  Log on to my website at www.FSIWallStreet.com to find out how.

 

 

7 - You must be tied to a pager.

You don’t have to be a day trader in order to make significant profits in the stock market.  And you don’t have to spend all day watching the market.  I use the trading system in the evenings after the market has closed. The only time that I look at the live market is when I am entering into a trade. You can learn and use this system in your spare time.  I’ll show you how to manage risk and collect your profits by automating your trading so that you can spend your day enjoying life.  This is the way to generate passive income, income that flows to you without having to be physically present.