Many people have the wrong idea about investing in stocks. Therefore, most do not invest in investing in stocks missing out on the chance of a lifetime to profit from the greatest money making machine man has ever invented. In the same way, they also miss out on the rare market opportunities when prices drop to a rock bottom, which happens only once every 3-5 years.

Tales and legends about investing in stocks abound, but I’m just going to list a few that I think are the most widespread. These are presented here in the order of most popular first and least popular last.

1.) To invest in the stock market, you need a truckload of money.

This is easily the first and foremost turn off for people who want to invest in the stock market. They think that in stock market investing, one has to have a huge cash reserve. This is simply not true. Due to the availability of the Internet, the transaction cost of stock brokerage and other transactions have been greatly reduced. Even the minimum amount required for investment has been reduced. When I started investing in stocks, I remember paying only P5,000.00. P3,000.00 went to the initial deposit to open a savings settlement account, while P2,000.00 went to my business account. Do you know how much my online broker is asking to keep in my trading account? Only $500.00!

When buying stocks, the larger the fund you have in your trading account, the better for you, as you can buy more and take advantage of the opportunity when prices drop. The amount you need to invest in shares depends on the price and the “board lot,” which is the minimum number of shares that can be purchased. Multiply the board lot by the sale price per share and you get the minimum amount required to purchase a given share. You can check the stock information page of the Philippine Stock Exchange website for information on the board lot size of each stock.

So how much is the minimum amount of money required to buy shares? This one is for Ripley’s – you can buy shares for as little as P5,000.00! The board lot for Jollibee Foods Corporation (JFC) shares is 100 shares. At the current market price of P50.00 per share, 100 shares for P50.00 per share is P5,000.00.

There, see? Investing in stocks really doesn’t need a lot of cash.

2.) Investing in the stock market is a complicated business.

Not hardly, but you have to do a little work. What lucrative venture promises effortless profit?

People mistakenly think that investing in stocks is a complicated business because they see images of businessmen or investment wizards examining charts and graphs, discussing investment theories and principles (Elliot wave, Fibonacci expansion) using terms (resistance, consolidation, etc.). , etc.) only in language. they could understand.

But hey, don’t worry because no one needs to learn all that when investing.

Don’t get me wrong though. There are some principles and theories in stock investing that have been found useful in finance, economics, science, and mathematics. These have been established by highly intellectual individuals whose names are widely recognized in their fields of discipline. Some of these theories have been applied and worked well in investing. Some just don’t simply because the stock market is too unstable and temperamental to be accurately predicted by cold scientific principles. As Sir Isaac Newton, who lost a fortune in the South Sea Bubble stock scam, ruefully expressed, “I can predict the motion of heavenly bodies, but not the madness of crowds.”

You’ll be glad to know that you don’t need all of this to start investing in the stock market. You just need to learn simple fundamental trading principles and some common sense. However, you should be able to read and understand a financial statement, but you don’t need to go through the entire accounting principles and theory course. If you only have a basic understanding of financial statements and have business sense in addition to good common sense, you’re good to go.

3.) Investing in stocks will make you a millionaire overnight.

Look at the stock market from a business point of view. After all, when you buy stock, you are buying a business because the stock represents a part of the business.

With that in mind, you will understand better when I say that investing in the stock market does not make you millionaires overnight. No one has yet started a business one day and then sold it for a million dollars the next day or the next week. Like a seed, a business needs time to grow. Before you get solid returns from the stock market, you need to give it time to increase in value.

The stock market may very well be the greatest money machine ever made by man, but it is not the fastest. It is a machine and machines take time to produce! If you’re thinking of becoming a millionaire overnight through the stock market, you’re looking in the wrong place. Go to Las Vegas where you can be a lucky instant millionaire overnight, that is, if you don’t get caught first and lose your shirt along with thousands of other aspiring millionaires, still hungover.