Equities entail a series of comments that are not fulfilled in all situations. To the point that they have become very hackneyed phrases that are present in the jargon of small and medium investors. You should know these curious topics to determine in which situations can they be true and where they are met very regularly. A good part of these phrases surely you know them, but others may represent something new from now on.
Because in the world of equities it is something very serious that you should not confuse it with another kind of more or less verified analysis. They are topics that affect the length of stay, amounts that you have to allocate and even the best stock values to contract. Everything comes into play when it comes to making money profitable. Even through a few more or less planned phrases within your lexicon in your relationships with the complicated world of money. Of course, you should not underestimate this aspect a bit far from the strategies related to investment.
In either case, it will help you know a little more about psychology that entails the variable income. Even so that you can make fewer mistakes than up to now. Because in fact, it can be an excellent parameter for you to optimize all your operations in the financial markets. Not only in the stock market, but also in other alternatives, such as the commodity markets, precious metals or even corporate bonds. There are no exclusions to using this kind of special topic in your usual language.
Topics: you always win on the stock market
Although it is normal that in the longer terms this scenario is fulfilled, it is not a general rule to be victorious in all your operations in the equity markets. Because it is simply a bag and therefore absolutely anything can happen. Win or lose depending on the evolution of the financial markets at a determining moment. Of course, it is something unpredictable and that depends on many factors. Therefore you should not be very receptive to this kind of comments in financial circles. At least with a very relevant roundness.
Much money is required in investment
In this case, this scenario is not fulfilled either. Because you can take positions in equities from less than 100 euros. Although the performance you will get will be practically priceless. If you want to generate large capital gains, you will have no choice but to provide a very demanding monetary capital. It will be one of the keys so that you can live off the stock market from now on. Because normally investors opt for really demanding amounts when it comes to their amount. But without being an exclusive requirement so that you can open positions in any of the equity securities.
The biggest risk is losing everything
Something very serious has to happen for you to leave all your financial contributions in an operation of these characteristics. Not surprisingly, it is practically impossible for your balance to drop to zero. Only if the companies stop listing on the stock market will you lose the money you have invested in these movements. In any case, the bag carries many risks in your operations, where you can leave a lot of euros on the way, but not everything. In this sense, it is something that you should take into account when planning your investments in this kind of financial markets.
Anyway, there are some other examples on such a negative scenario that it can be raised on occasion. Although in a more specific way than anything else. One of the most relevant examples is what has happened to the shareholders of the popular Bank they have lost all the money they have invested. But it is not something that often develops in financial markets. It is a small consolation that you will have when things do not happen as you had planned from the beginning.
The stock market generates a fixed return
Only ignorant or less knowledgeable investors can say a topic of these characteristics. Because in equities there are no fixed returns of any kind nor guaranteed. Unless you look at the dividends that are governed by this particularity. Because if you are going to make your savings profitable from now on, you should know that there is no interest rate that can be guaranteed. Never and under any kind of investment approach. It is not about fixed income where there is a fixed payment in almost all financial products. You must differentiate both models in investment to use one or the other strategy.
It is intended for all profiles
It is a serious error that emerges from this categorical assertion. To the point that it can mislead you when choosing the best product to make the savings profitable. Because, like it or not, the bag is intended for the most aggressive investors. And among their conditions that they are in a situation in which they can assume the losses that open operations entail in these financial markets. In addition, to operate on the stock market you must provide a greater financial culture than through other financial products. Something that does not happen in many of the savers who are tempted to open positions in the equity markets. Not surprisingly, it is one of the most frequent mistakes that some people make and that can be paid for with bad operations.
It is always time to buy
Technically, this topic may have something to do with it. But it should not be applied at almost any time because it can generate more than one problem in the operations carried out. On the contrary, it will be very important that you fixate on a goal to determine at what price levels you should formalize purchases on the stock market. Because indeed, one of the keys to a good equity transaction is to adjust sales prices. And if possible also in sales. So that the performance of your assets is the most optimal and you can transfer them to the balance of your checking account. That is why you should not acquire the shares at any price because the operations will be more at the expense of failure.
Generates a lot of stability
Although this scenario may occur, it is not the general trend in these financial markets. Because in effect, in the stock market volatility in the price of the shares is something frequent in a good part of the trading sessions. But generally the differences that are dreamed of giving between the maximum and minimum prices are quite appreciable. With margins that usually exceed the 2% barrier. If what you are looking for is stability for your money, of course the bag is not the best product you can choose. Although there are periods with greater tranquility and with very little appreciable differences in changes. To the point that you can select other less demanding investment models. For example, investment funds based on equities or listed ones. Not surprisingly, you will be in a better position to control them at any time.
The earnings are very large
Of course, this approach is not true at all. Because in effect, it can be extensive but also minimal or even lose money in operations. Not in vain, everything it will depend on countless factors since there is no fixed rule to know the intensity of the gains. In the stock market it is something completely unpredictable and that you can hardly foresee. It is one of the attractions of this financial product and for which many people choose their movements. Therefore, it is a topic that is not very appropriate to use, much less to ignore it from now on.
As you have seen, you do not have to make all kinds of comments that are generated from the financial markets. To the point that you will have to be very selective about learning them. Because you can't forget that at some point they can harm you in your interests. At the end of the day, this is what it is all about and you cannot leave operations to improvisation. And of course, much less in the comments or topics that come from other people with personal interests in the financial markets.
It is very important that you bear in mind that these types of operations are governed by very particular approaches and those that other financial products lack. Because any event that may develop can ruin the investment strategies used. You cannot forget at any time if you want to be disciplined in your approaches to act with greater caution in your actions.
However, they can be of some help to you in planning some other unorthodox strategy. Because in this sense, it can give you the odd clue about the more or less real state or sentiment of the financial markets. But as long as you use them with great caution.