get.investors.com Open in urlscan Pro
104.16.175.239  Public Scan

Form analysis
2 forms found in the DOM

<form id="form" class="needs-validation " novalidate="">
  <div id="loader">
    <div id="loader-icon"></div>
    <h2>Please wait while we send your input...</h2>
  </div>
  <div class="form-row">
    <div class="col-12 mb-3">
      <label for="email" class="sr-only">Email address</label>
      <input type="email" class="form-control form-control-lg  rounded-0" id="email" name="email" placeholder="Email" autocomplete="off" required="">
      <div class="invalid-feedback my-2 text-center"> Please enter a valid email address. </div>
    </div>
  </div>
  <div class="form-row">
    <div class="col-12">
      <button id="submit" class="cta cta-green text-uppercase text-center rounded-lg h5 d-block mx-auto mb-3" type="submit">Sign Up</button>
    </div>
  </div>
  <div class="form-row">
    <div class="col-12">
      <div class="valid-feedback success text-center">Success! Thank You for Signing up to receive Moneyworks emails</div>
      <p class="text-center disclaimer grey"> By signing up, I agree to <a href="https://www.investors.com/investors-business-daily-privacy-policy/" target="_blank" class="grey-link"><u>Privacy Policy</u></a> and
        <a href="https://www.investors.com/home/investors-business-daily-inc-terms-of-use/" target="_blank" class="grey-link"><u>Terms of Use</u></a>. </p>
    </div>
  </div>
</form>

GET https://tr.snapchat.com/cm/i

<form method="GET" action="https://tr.snapchat.com/cm/i" target="snap014446731715690198" accept-charset="utf-8" style="display: none;"><iframe id="snap014446731715690198" name="snap014446731715690198"></iframe><input name="pid"></form>

Text Content

Skip to content
 * Personal Finance
 * Start Investing

Join Us
×

JOIN THE MAILING LIST AND GET YOUR MONEY RIGHT.

Enter your email to get new Moneyworks lessons, videos and invitations to free
webinars. No spam, just the good stuff.


PLEASE WAIT WHILE WE SEND YOUR INPUT...

Email address
Please enter a valid email address.
Sign Up
Success! Thank You for Signing up to receive Moneyworks emails

By signing up, I agree to Privacy Policy and Terms of Use.

How to Start Investing


STOCK MARKET: MYTHS VS. FACTS

THE STOCK MARKET HAS MORE MYTHS THAN ANCIENT GREECE. WE’LL USE RESEARCH AND
FACTS TO DEBUNK THE 6 MOST COMMON ONES.


BUY LOW, SELL HIGH


MYTH:

The buy low idea suggests that the best time to buy a stock is after it’s fallen
a great deal.


FACT:

Research shows that many of the greatest stocks of all time have signaled their
best buy points when trading near their highest price at the time. From those
points, they seldom dipped much but continued higher above their “already-high”
buy point.

Check out IBD University for more tips on when to sell a stock.


BUY THE DIPS


MYTH:

A stock that traded at $10 a share yesterday is a deal at $9 today.


FACT:

Too often that’s not the case. A falling stock often continues its descent, with
sellers joining the move for the exit with each tick lower. And when you buy the
dips, often you’ll end up joining those sellers––at a lower price and a loss!
Buy stocks that are moving higher, especially on rising volume. Rising stocks
tend to attract more investors, providing a cushion for your buy point.


BUY AND HOLD FOREVER


MYTH:

Jumping in and out of stocks leads to losses. It’s better to buy and hold for
the long haul.


FACT:

A leading stock’s average run lasts 12-18 months, after which it falls into a
steep and prolonged decline. Worse, after a leading stock reaches the zenith of
its run, it often never returns to its high or takes years to get back there.

So what happens after the stock’s run is over? It stops going up or falls,
taking your gains with it. Meanwhile, unless it’s a bear market, other stocks
are running up. It’s better to recognize the signs of when a stock’s run is
over, sell it and put the proceeds into a stock that shows signs of rising
higher. Then you won’t be sitting on dead money, or worse—losses.

Learn some simple rules for selling stock whether you're experiencing big gains
or need to cut losses.




CHEAP STOCKS ARE GREAT FOR BEGINNING INVESTORS


MYTH:

Many beginning investors think that because they’re starting with a small amount
of investment dollars, they can’t buy stocks above a certain price.

If you’re starting with $500 to $2,000 in your account, Adobe stock trading at
over $600 a share and Google trading at almost $3,000 a share seem out of reach.
You might think buying a few shares of a high-priced company is not a strong
investment, while buying dozens or hundreds of shares at $10 or a penny stock is
making a statement.


FACT:

It’s not the number of shares you buy that counts—it’s percentage gain on your
money. And since the average price of stocks leading the market higher is above
$32 a share, you’re better off buying fewer shares of quality stocks than a
bunch of shares of lower-priced, low-quality stocks.

These days, many brokers and trading platforms allow you to buy fractional
shares, which are smaller parts of high-priced stocks. Many online brokers have
fractional shares of popular companies like Amazon or Google for as little as
$5.

Having a small account shouldn’t stop you from buying a great company when the
time is right.


STOCK CHARTS DON'T MATTER


MYTH:

Stock charts have no predictive powers for serious investors when it comes to
picking stocks and gauging market trends. Stick to company fundamentals and
you’ll be fine.


FACT:

Stock charts are valuable tools that help investors see when the market is
trending lower or higher as well as the optimum time to buy and sell individual
stocks. Remember, fundamentals tell you which stocks to buy, and charts tell you
when to buy and sell.

Check out IBD Investor’s Corner for more on stock market timing.


YOLO


MYTH:

You can’t make big money without risking it all. Put most or all of your money
into one big trade, and if it pays off, you’ll be rich overnight.


FACT:

Nope. Don’t put all your money into a single trade, especially a risky one. This
is especially true with volatile trades in options and cryptocurrency.

Don’t expect to make millions overnight. It takes time to build wealth!

Losing it, on the other hand, can happen really fast if you’re making high-risk
bets.


KEY POINTS

1

The best stocks rarely go on sale. If a stock is low-priced (less than $10 per
share) or falling quickly from its previous high price, that is a red flag.

2

Buy a stock, hold for its price runup then sell it to lock in your gains.
Reinvest your profits in new stocks just starting a run.

3

Don’t risk a big chunk of your investing money (or all of it) on a single trade,
hoping for a quick home run. This is especially true of volatile assets like
options and cryptocurrency.

Read more on How to start Investing

 * Why Start Investing
 * Types of Investments
 * What is the Stock Market?
 * How to Trade Stocks
 * What Makes a Great Stock
 * How to Read a Stock Chart
 * Stock Market Myth vs Facts
 * How to Get Started

Facebook Instagram Twitter LinkedIn Youtube


MORE ON INTRO TO INVESTING

WHY START INVESTING NOW

If you’ve got money, you can make it work for you. Here’s the best part: you
don’t need a lot to start, and getting an early start can make a massive
difference.

TYPES OF INVESTMENTS

Where can you stash your money, aside from a shoebox under the mattress? These
are the most common ways to invest and grow your funds.

WHAT IS THE STOCK MARKET?

Bulls, bears and big banks: It’s all part of the rich stew that is the stock
market. Here’s an intro to how it works and the lingo to know.

HOW TO TRADE STOCKS

Buy, sell or hold? Trading stocks is how you make money in the market, and we’ll
show you how it’s done.

WHAT MAKES A GREAT STOCK?

There’s an old saying: All stocks are bad unless they go up. We hit the books
and found 5 things that the biggest stock market winners have in common.

HOW TO READ A STOCK CHART

Got 10 minutes? Then you can learn to read stock charts and give yourself a
massive edge when you’re investing.

STOCK MARKET: MYTHS VS. FACTS

The stock market has more myths than ancient Greece. We’ll use research and
facts to debunk the 6 most common ones.

HOW TO GET STARTED

Now that you’ve learned about the stock market and trading, interested in trying
it out? Here’s your guide to jumping in.

Facebook Instagram Twitter LinkedIn Pinterest


© 2022 Investor's Business Daily, LLC. All rights reserved. MarketSmith is a
registered trademark of O’Neil Capital Management Inc.
About Us | Terms of Use | Privacy Policy | Do Not Sell My Personal Information