Building a career in stock market-busting the myths
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If you have thought about becoming a stock trader, it can be a lucrative career path.
According to investopedia.com, the stock market refers to the collection of markets and exchanges where regular activities of buying, selling, and issuance of shares of publicly-held companies take place. There can be multiple stock trading venues in a country or a region which allow transactions in stocks and other forms of securities.
There are different types of stocks to invest in, which are: common stock; preferred stock; large-cap stocks; mid-cap stocks; small-cap stocks; domestic stock; international stocks and growth stocks. This article is about busting myths so you can make an informed choice when considering a career in the stock market . A career in the stock market is as rewarding and reassuring as it sounds. You become your own boss, and what better it is than to be a free bird.
Myth 1: Stock market is gambling: Just like any other business, you must have a reasonable risk-return expectation in mind. Wealth creation is a slow and steady process.
Myth 2: There is always the risk of sudden declines: Yes, the stock market is volatile. Volatility can work in your favour if the trading actions are done with complete understanding and conviction. It provides an opportunity to buy good companies at reasonable prices.
Myth 3: Stock market career is only for experts: It takes time to master any skill and so is the case with stock markets. Present-day, Individual investors are the largest participants in the stock markets.
Here a few things to bear in mind before starting out in this career path:
- Read as much as you can. Newspapers, business magazines, journals, blogs and whatever else it takes to stay ahead.
Interact with like-minded people. Be a part of community groups and forums that engage in thought-provoking discussions.
- Be slow and steady.
- Build your own conviction.
- Risk management is supreme.
Remember to take advantage of lifelong learning opportunities to maximise your growth potential. When there are extra training opportunities or courses offered by your employer, attend them to keep up with the latest trends within your field.