Prof. Tyler yamazaki

Chapter 2
Myths and Misconceptions
There are some myths and misconceptions about investing in stocks. In
order for you to have a better understanding of what it really means to be a
stock investor, be sure that you know the truth behind the myths:
Investing in Stocks is Gambling
This is one of the reasons why people shy away from the stock market.
However, this is not always true. Take note that the prices of stocks in the
market depend on certain factors, such as the economy, business
performance, consumer behavior, and technological developments, among
others. The prices of stocks do not fluctuate randomly. There are always
reasons behind every movement. This is unlike gambling in a casino where
the outcome of a game depends on a shuffled deck of cards that nobody has
any idea how each card is positioned on the deck.
Whether the stock market is gambling or not depends on how you approach
it. Of course, if you simply pick the stocks at random and merely rely on
pure luck to be successful, then you are gambling. As such, you can expect
the same results as you would when you gamble in the casino. However, if
you approach the stock market professionally where you put in enough
time, effort, and research, in your every transaction, if you consider every
act as an investment decision, then you are not gambling but investing.
Gamblers rely on luck, while true investors know what they are doing and
have an edge over the stock market.
Investing in Stocks will make you a Multi-Millionaire
Investing in stocks is just like any other business: You can make money;
however, you can also lose money. Like any investment, there are risks
involved. Indeed, there are people who are able to grow their money, but

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there are also many investors who lose their money. To be successful, you
need to understand the stock market and apply certain strategies. Of course,
a major part of success is to conduct serious research.
It is also worth noting that you will only earn a certain percentage of your
investment. Of course, it is possible that you earn more than 100% or even
200% of your investment. However, do not expect it to happen overnight.
Therefore, the more money you invest, the more profit you can make.