You need money to make money investing, that much is true. But you don't need a lot of money. The best example is starting an equity mutual fund SIP with as little as Rs 500 per month. Most mutual funds have a minimum Lumpsum investment of just Rs 5,000.
Investing is too Risky
It's different this time
This is the very common statement which everyone starts saying whenever market corrects from its high. The fact of the matter is that one can never tell with confidence whether it is just a correction or the beginning of a prolonged bear market. Instead of trying to make sense of every market movement, an investor should focus on buying a good business at a reasonable price.
This stock is down 90%, how much it can fall more
This is one of the common mistakes made by certain investors. Say XYZ company which was priced at Rs 200 few months back, is currently quoting at Rs 10. Suppose you bought 100 shares at Rs 10 and since the stock has already corrected 90% so you may think that the only risk is Rs 10 per share. But say in a month's time, it came down to Rs 2. In absolute terms, it's just a loss of Rs 8 but in relative sense, you have already lost 80 % of your capital.
You have to be a genius to make money in the stock market, I am too young/old to invest
IPO means quick and sure money
This stock is a multibagger. Let's borrow money to buy more of it
If the stock has done well in the past, it must do well in the future too...
Examples of Sun Pharma pop up in the mind in this context. Investors who bet on this company 3 years back have ended up losing money. Warren Buffet used to occasionally joke that if the past was what the market was all about, then librarians and archaeologists would be the wealthiest people in the world.
The best way to make money is investing in what is hot