A lot of people have the wrong notion about investing in stocks. Therefore, the majority do not invest in the invest in stocks missing the chance of a lifetime to cash in on the greatest money-making machine man has ever invented. By the same token, they also miss the rare market opportunities when prices drop rock-bottom low which happen only once in 3 to 5 years.

Tales and legends about investing in stocks abound but I am only relating some of them which I believe are the most widespread. These are presented here in the order of the most popular first and the least popular, last.

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

Easily, this is the first and foremost turn-off for people wanting to invest in the stock market. They think that in stock market investing, one has to have a huge stockpile of cash. This is simply not true. Due to the availability of the internet, the cost of stock market brokerage transaction and other transactions have been greatly reduced. Even the minimum amount required for investment has gone down. When I started investing in stocks, I remember paying only P5,000.00. P3,000.00 went to the initial deposit for opening a savings settlement account, while P2,000.00 went to my trade account. You know how much my online broker asks to maintain in my stock market trading account? Only P500.00!

When buying stocks, the bigger the fund you have in your trade account, the … Read more