BCS Express - a comfortable website for private investors BCS Express - a comfortable website for private investors Financial literacy grows from generation to generation, but some misconceptions are still a thing of the past. We dispel 5 мифов про stock market.
1. Continuous swindle
Of people, thinking like that, can be understood: among some Russians, the experience of the 90s gave rise to distrust of financial institutions in general. And even many of those, who treats unfamiliar words without prejudice, still don't quite understand, what is the exchange, stock, bonds.
Why is it not so. Ignorance breeds fear, and in fear the eyes are large. However, if you figure it out, then everything is simple.
The most "hot" commodity on the stock market is a stock. This is a security, giving its owner the right to participate in the management of the company and receive part of its profits. Buying a share, you, in fact, get a piece of the company. So, you can become a shareholder of Sberbank, Gazprom and other largest companies in the country and the world. If the corporation is working and making a profit, then they work together with it and bring income and your money - as thanks to the rise in stock prices in the long term, and in the form of dividends.
The share price is reflected in the charts. The price is formed depending on the assessment of the company's potential by investors, external and internal factors and other criteria.
The exchange ensures the functioning of the commodity market, currency, securities and derivatives.
Broker — посредник между инвестором и биржей.
All activities of brokerage companies and the exchange itself are strictly regulated by the state. Any violations are punishable by law. The state is interested, so that the population expands the range of investments. So, to attract citizens to the stock market, the state even introduced tax incentives. for example, IIS.
What does it mean. To prevent the myth from becoming reality, you should carefully consider the choice of a broker / investment or management company. Better target big players, time-tested.
Understand that, how the stock market works, it is not difficult to learn about the main tools and how to invest in them. Now almost every major trade organizer, whether it is the exchange itself or a brokerage company, offer to take a short full-time course. And on our website you will find a huge amount of free available information about the stock market.
2. Beginners don't belong here
There is an opinion, that investing on the stock exchange is the lot of professionals with vast experience and financial education.
Why is it not so. Anyone can trade on the stock exchange, and professionals were once for beginners.
So that the first experience does not turn out to be sad, многие инвестиционные компании проводят обучающие courses, seminars and trainings, give an opportunity to practice, try trading on a demo account, before starting work in the stock market.
What does it mean. For the first steps to be successful, you should not open a brokerage account with the "purpose of boldly enriching yourself". Read special literature, take courses. Start investing small and diversify your portfolio, including various tools.
3. Investing in stocks is a casino
This opinion is usually expressed by people., who know nothing about the stock market. They are sure, that making a profit on the exchange is just a successful bet on a certain share, and a mistake is fraught with ruin.
Why is it not so. Buying a stock bears little resemblance to betting in a casino, although the stock market also has blue chips.
By choosing, what share to buy, the investor evaluates the business prospects of the corporation: business conditions, estimated profit, risks, which may affect her income.
Short-term price movements are sometimes random, however, in the long term, the company's value tends towards a fair fundamental level.
Gambling, opposite, are zero sum games. They just redistribute money from loser to winner.. No value is created.
Therefore, investing is not a roulette game., in which long-term success is very dim.
What does it mean. Don't recklessly distribute your capital across a bunch of cheap stocks, without doing any research. Do not invest all your funds in one "hot" promotion.
If you came to the stock market without any knowledge and make decisions, relying on luck, then you cannot be called an investor, you are a player. Don't come to the market to play - come to invest.
4. If I knew the buy-in, I would live in Sochi
Only one can earn on the exchange, who owns additional information, but ordinary people have no place in the market.
Why is it not so. Most successful brokerage clients are ordinary people., far from big business and politics. When making deals, they are guided by the news, analytics and technical analysis - that is, to that information, which is freely available.
Possessing confidential information, theoretically, you can make a profitable sale or purchase of assets - but this is not worth doing, since insider trading, ie. manipulation of the issuer's securities on the basis of information closed to a wide range of people, in Russia is regulated by the Federal Law "On Countering the Unlawful Use of Insider Information and Market Manipulation" No. 224-FZ dated 27.07.2010. Penalties depend on the severity of the violation and may include a fine, forced labor with deprivation of the right to hold certain positions or imprisonment.
What does it mean. Don't try to build your strategy only on people's recommendations., who “know that, what others do not know "or rumors from the media and social networks. This information may be inaccurate. Consider the risks when obtaining any information, evaluate its impact on the asset and, in any case, diversify your investments.
5. Either everything or nothing
In the stock market, you can either daringly enrich yourself, or be left without pants.
Why is it not so. Sure, who does not risk, he doesn't drink champagne. And risk, along with profitability, are the two main determinants in the stock market.. The greater the profitability, the greater the level of risk. However, earning income on the stock exchange is a deliberate choice of the ratio of these criteria.
A successful investor is not the same, who closed one trade with a profit, and who receives this profit for a long period. No intelligent investor will invest in a single asset, who will determine the fate of his capital. If he takes risks, then there are serious reasons for this risk.
Consider the story of investor Michael Burry, which formed the basis of the film "Selling for a Fall". He is known for, which was one of the first to predict the fall of the real estate and mortgage lending market, which caused the financial crisis 2008 r. Burry then worked as a manager of the hedge fund Scion Capital and in 2005 r. insured about a billion dollars of his clients through a credit default swap. Then such a bet was considered crazy, and the fund's investors intended to sue him. In three years, in 2008, he earned for his fund $700 million (489,34%) and personally - $100 million.
However, behind such a decision of the investor lay a reasonable economic analysis of the situation in the US mortgage market., not just speculations or rumors.
What does it mean. Don't confuse the stock market with a casino and don't put your eggs in the same basket.. Desire to turn $5 000 in $40 000 in a short time can cost you dearly. Sure, you can make a profit above average, but you must remember, that there is a high income in stock trading, usually, associated with high risks. When you first come to the market, do not count profits - control losses.
Important news awaits you here, forecasts and investment ideas, teaching materials, serious analytics and easy reading, as well as a lot of convenient services, including calendars of dividends and buybacks.