Many people think that investment is a way to multiply wealth relatively in the shorter term. And that’s why they come to the stock market and buy shares of companies so that in months they can earn a good amount of money. If this was so easy to do then anyone would have just pumped in their entire wealth to multiply it every year.
People who don’t know much about markets try to gain knowledge through social channels like Telegram, YouTube, Facebook. They pay a huge amount of money to attain workshops. And trust me that there is so much amount of scam on the internet that everyday people lose some amount of fortune in it.
In the year 2020 markets shot up and had doubled investor’s wealth in a span of one year. And that’s why many people who had less amount of knowledge got attracted through its lucrative returns. Investing is said to be an option to gain more return than bank fixed deposits and other kind of schemes. But it comes with lot of risks.
It’s a good source of revenue only to those who can manage their risk wisely. One can never become successful in the stock market or any other kind of market through aggressive investments. Showing aggression towards these assets will only incur losses and nothing else. We have to make sure that we treat them as the member of the family.
Many people call stock markets as a place of gambling and when they land here with this intention then they only lose money. The right kind of intention will always pay you with profits or ultrahigh losses. If you treat it with hate and anger then of course it’s you who will be bearing the loss. And ultimately in the longer term you will be called as the loser.
PATIENCE IS THE ONLY KEY TO SUCCESS IN ANY KIND OF MARKET
People lose more money by taking great leverage on their assets. If you don’t want your capital to get vanish then you have to act humble and learn from your mistakes. Youngsters who enter the stock market generally don’t have enough patience and lose the entire amount by taking greater than 2x leverage.
Remember it’s not possible to multiply money in a shorter period of time unless and until you have built enough experience about stock markets. Even the most experienced and skilled trader cannot make money in shorter duration of time. The reason behind this is there are no definite patterns in stock market.
A pattern might remain for a few days but after sometime it will start deviating from it. A trader tries to understand these patterns and through some analysis he/she makes money. For an investor, it’s all about the long-term trend. An analysis of historical chart and fundamentals can help you to find out best quality stocks. A good quality stock is something which is giving consistent returns on a yearly basis.
At last in market what matters is the buying price and the selling price. It’s simple to see but practically hard to maintain. Our emotions play a very important role in markets. If we don’t control our emotions then obviously we have to lose. Before entering into markets, you need to first train yourself to control your emotions.
Before deploying your hard-earned money into anything, you need to first have full control on your emotions. Ninety nine percent fail in markets because they don’t stay patient. They lose because of not sticking with the strategies. And at last they don’t even earn more than fixed deposits offered from a bank. It’s sad but at the same time very much important for those who want to invest in share market.
YOU WILL GET ADDICTED TO MARKETS IF PLAYED AGGRESSIVELY
Just like consuming alcohol and cigarettes cause addiction, stock markets too are much more addictive than these. I am not joking but there have been cases of suicides and crimes related to stock market all over the world. It can actually give you the worst anxiety if you play on your investments with aggression.
Maximum frustration takes place in stock market because people think that it is the way to gamble money. And that’s why they get very much addicted to the stock market because of uncontrolled hunger and making senseless decisions. Any kind of situation can arrive in stock market. The movements of price, volatility is always a major concern for short-term investors.
While long-term investing looks much friendly but it can slowly erode your capital. Stock market should be chosen as a secondary source of income because humans cannot focus on other important work at the same time. It can consume time and energy. And that’s why you shouldn’t hold any kind of emotions in the stock market.
You need to have focus on your passion and work. Think stock market as a source of investment and don’t hold your emotions into it. If you keep in mind these important points then definitely you will succeed in stock markets. For that you will have to train yourself and your emotions.
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