3 Myths About the Stock Market You Should Leave Behind in 2016

Trading and investing in the stock market can be a great way to create wealth. But, you're getting (and giving) some bad advice.

It’s ok. You didn’t know.

That’s why I’m really glad you found me out here on the line!

Yep. That, too.

So, let's clear up 3 myths about the stock market that are holding you back from achieving financial freedom.


Myth #1: I have to have a lot of money to get started in the stock market. It’s only for rich people.

According to a survey by Bankrate.com, most people feel they don’t have enough money to start trading or investing. Most people think they need to have a lot of money to get started in the stock market.

Good news for you... That’s simply not true.

I started with a paper money account that allowed me to practice my trading techniques on the line with fake money before putting real money at risk. While I was practicing, I set aside money from each paycheck to build up my trading account. When I was ready to start trading with real money, I had $2500 saved up to open my trading account.

You could even start with less than that. I recommend starting with at least $1000 but be sure to check with your online broker to see if they have any account minimums set.


Myth #2: Trading the stock market is like gambling. It’s too risky and I’m better off leaving my money in the bank.

Don’t confuse creating wealth with gambling. Gambling is about taking money from the person who loses and giving it to the person that wins. It’s a rebalance of money and based merely on chance. When it comes to the stock market, you are investing in the success and profitability of a company and the overall economy. Investing is about creating wealth.

I like to play roulette from time to time but I’d much rather have my money in the stock market.

Myth #3: It’s all way too complicated to understand and you need to be really smart or have a finance degree. There’s just no way I could do it.

Not true at all. People over complicate the stock market by thinking they need to know everything there is to know instead of mastering one small corner of the market. I won’t dare say I know everything or call myself an expert. But, what I do know makes me (and my students) a lot of money.

Did it take some work to get to where I am? Hell yeah! But it was hands down worth it. Honestly, all you need to know is basic math. That coupled with the knowledge you have about the products and services you already use on a regular basis will make you a great trader and investor in your corner of the market.
 

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