5 stock market myths first time investors believe to be true

1. You should always buy stocks when they have fallen significantly in valueShare prices can sometimes fall substantially?—?share price falls of 50% or more are not uncommon. So when this happens is it always a good time to buy? In short the answer is no.Remember that while the stock market can be irrational, there can equally be good reasons for a share price fall?—?sometimes the fundamentals of a business may have changed dramatically to justify the falls. This can even lead to a situation known as a “value trap”, where while the share price has fallen, it is nevertheless still too high...

1. You should always buy stocks when they have fallen significantly in value

Share prices can sometimes fall substantially?—?share price falls of 50% or more are not uncommon. So when this happens is it always a good time to buy? In short the answer is no.

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