PostHeaderIcon Reasons to Avoid Stock Market Investing

Stock Market InvestingStock market investing may provide a good opportunity for some people to make money. While it may be an opportunity for some, the stock market may also prove to be a place where hard-earned money can be lost just as easily. Stock market investing may work for others and it may not work for some. For those who should be avoiding it, here are the following reasons.

Relying too much on broker advice

If you wish to depend largely on the advice a stock broker might give you in terms of your investing strategy, especially one that promises untold riches, then stock market investing should not be for you. According to studies, there seems to be no distinct difference between investing using the advice of brokers with those people who invested on their own. Some studies even suggests that mutual funds selected by the brokers tend to be more expensive and performed less than those that were selected without using their expertise.

Investing on instinct and gut feel

If you think that you have that special ability to pick out stock winners and you just have to get into stock market investing, then you may be in for a big surprise. In most cases, you might just end up losing more if you base your investments on what stocks you feel will break out of the mold. More than 95 percent of people who do so usually fail over a 10 year period. Stocks are fairly priced and price changes are mainly based on the stock associated information provided the next day.

Not knowing the difference between gambling and investing

Some people invest in stocks not knowing if they are gambling or investing and fail most of the time. Good stock investors are those that can differentiate between the two. Gambling on the stock market is for someone who seeks instant and immediate results. Stock market investing is for someone who is patient enough to see earnings for the long term.


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