Myths and Facts About the Stock Market
When I first wanted to invest in stocks, people closest to me had advised me that it was very “dangerous”. There are quite a number of people who lose or even go bankrupt after investing their money in stocks. They then suggested that I should just put all the money in the bank. “Safer,” they said.
Those words actually had time to “reduce” my intention to open a stock account. However, after careful consideration, I then ignored all the advice.
I am a person who is stretch tent hire often curious, and that curiosity finally defeated the doubt that had enveloped my heart. So I decided to open a stock account at a securities company, and start investing in small stocks.
Fortunately, my investment was quite successful. I was able to enjoy profit above the bank deposit interest. In just a matter of months, the stocks I bought grew beyond expectations.
Of course not all of my investments went smoothly. There were times when the stock I bought actually fell sharply even though the stock had just been bought up 3 days earlier. As a result of the stock being “beaten” by the dealer, I lost up to 11%. I was forced to sell the stock at a loss, and some of my money disappeared in no time!
Even so, the bitter experience did not make me give up. Instead of regretting the situation, I can actually learn a lesson from the incident. I have learned that investing in stocks should not be greedy.
Do not because we see the price of a stock is rising high, we are immediately attracted to buy it. All investment decisions should be considered with a cool head rather than just following the passions.
Now I am still actively investing in stocks. Over time, I became more acquainted with the intricacies of the stock market in Indonesia, so that I could recognize some myths and facts, which I had heard and read about the stock market in the past. Therefore, through the following description, I try to uncover these myths and facts.
1. “The stock market equals gambling”
Over the years, the stock market has often been identified as a “casino”. This can happen because people do not understand the causes of stock price movements.
In fact, the stock price that goes up and down every day is influenced by several factors. One of them is the company’s performance. If we buy shares from a company with good performance, it is almost certain that the price will go up.
To find out which companies are performing well, we need to do an analysis. It’s called fundamental analysis. Through this analysis, we can find out the “entrails” of a company, so that we can be sure whether it is a company whose shares are worth collecting or not.
So, in choosing stocks, we can’t be careless, we can’t just guess this and that. Everything has a calculation. Unfortunately, not everyone is willing to do a fundamental analysis before buying a stock.
The reason? Because the analysis is considered too “complicated”, “complicated”, and “complicated”, although in reality this is not always the case. Hence, rather than analyzing the fundamentals of a company, investors generally prefer to do technical analysis, which tends to only observe the chart.
That then forms the perception that the stock market is a gambling arena. Because people don’t know what they are buying. To play gambling yourself, you can visit the mewahbet site to play to your heart’s content.
Everything just relies on luck. If you happen to buy the right stock, the investor can make a profit. Vice versa.
That’s why, as investors, we shouldn’t buy stocks like “buying a cat in a sack”. Too risky. We can lose a lot of money if we do that.
So, rather than simply choosing a “cap-cip-cup” of this and that stock, it is better for investors to conduct fundamental analysis carefully, so that they can avoid speculative actions similar to gambling on mewah bet.
2. “Investing in stocks can make you rich quick”
These words may have arisen due to the gambling mentality that some investors have. To me, those words are a myth.
Based on my experience, the benefits of investing in stocks can not immediately appear overnight. The stock market is not “magic”. Don’t expect to become a new rich person immediately after investing in stocks. Everything takes time, it takes a process.
Only, the problem is, sometimes there are people who are impatient. Buy stock today, want the price to go up 100% tomorrow! Wow!
Unfortunately, that is impossible! This is because stock price growth tends to be gradual. He is similar to a man who climbs the stairs step by step while playing a yo-yo.
The man is an analogy for a stock. The ladder is an analogy for stock prices that continue to grow over time. Meanwhile, the yo-yo is an analogy for stock price movements that go up and down in a short period of time oak.
Therefore, investors must have a thick “pocket of patience”. Stay away from the thought of wanting to get rich quick from the stock market because the thought will only harm the investor concerned. In the stock market, it is the patient who can finally reap the big profits.
3. “No physical evidence of investment ownership”
Some people say that stock transactions are risky because there is no physical form. This is true. This is because the majority of shares circulating in the community have now been converted into digital form.
In the past, all issued shares were printed on paper. It’s called a share certificate. This document is held and kept by the investor. The amount is not half-hearted. If you buy 100,000 shares, it means that investors must hold 100,000 copies.
Over time, script printing was considered less efficient. In addition to the number of pages, it is possible that the physical script is easily damaged, for example, due to burning, being eaten by termites, or even being washed away by floods. For this reason, all shares are then recorded and stored in digital form.
However, that doesn’t mean we can’t check the proof of ownership of the shares held. We can still see the list of shares that we have on the website of the Indonesian Central Securities Depository (KSEI).
This institution functions to document all the shares we own. So, don’t be afraid that our shares can be stolen or misused by irresponsible parties.
4. “Investing in stocks is complicated”
This myth seems to only apply to the past. Because, nowadays, stock investment is much easier to do. All processes, from account creation, stock transactions, data retrieval, to disbursement of funds, can be carried out in a relatively short time.
All that can happen because of the sophistication of information technology and the internet. The presence of such technology has made it easier for investors to sort out and select stocks that are worth investing in.
Thanks to the help of technology, investors no longer need to check issuer information one by one, read the financial statements of each company, or busy watching business growth from year to year.