A lot of beginner investors always have a big problem that they are trading with their emotions instead of trading with their minds. They w...
A lot of beginner investors always have a big problem that they are trading with their emotions instead of trading with their minds. They will invest their total money in a particular stock without analyzing its charts and if the chart goes down they will start to blame the share market. If you are a beginner investor remember that the share market is a long-term journey. You can't be a billionaire in one day. You need to know things before investing.
BEGINNER INVESTOR PROBLEMS
If a beginner investor buys a stock and he bought it without analyzing the stock's chart after few days the stock's price will start to get down. Then, he will stop investing and start to spread negativity about the share market.
So this post helps beginner investors to get out of problems.
1.investing is not a get-quick rich scheme.
Most of the investors need to become rich in one day and become a millionaire in next day. For this, they will start to hire a share market advisor and ask," which stock is best to become a millionaire soon " but the truth is they can't be a millionaire in one day. if they invest in a successful stock. They will take very foolish decisions and lose their savings.
When you are young focus on earning more than quick rich investment.
The basic reason for our investment is for we need our money to multiply even when we are sleeping and also for old ages when we will lose our energy to work.
Share market is a very long-term game and time plays an important role in that game.
If you want to be a billionaire at a young age the only that helps you is to build a strong business core and model.
2.LOSSES ARE PART OF THE GAME
If you enter in share market you always make a mistake and loss money. after losing money, think that you spent learning about the stock market which will help you buy a good stock in the future. even if you have a huge capital don't invest in it completely before you become confident about investing because investing everything without knowing the fundamentals of the share market will let you lose everything in the future. so before knowing about shares don't change or increase your capital amount. And think about losing money as your tuition fees to become successful in future
3.HAVE A POSITIVE OR MINDSET
In the share market world, many people are in a different category:
INDIVIDUAL STOCK:
some people say that they only invest in a particular stock.
MUTUAL FUNDS:
some say that they invest only in mutual funds to increase the capital amount.
FIXED DEPOSIT:
some say that they are afraid of equity and put in fixed deposits.
COMPOUND EFFECT;
Others will raise their capital by long-term investment like warren buffet.
CRYPTO:
SOME TECH PEOPLE INVEST IN CRYPTO AND MAKE A PART-TIME INCOME.
So, people are in any way like this you need to realize what you are. always many people will give their opinions about the share market. listen to their opinions deeply and then conclude do you need to invest in shares.
So don't invest in anything you don't know for fear of losing.
4.DEVELOP EMOTIONAL INTELLIGENCE:
In the stock market candle charts, every stock will go up and down and this chart betrays the emotions of some fool investors who invest in the share market.
If the support price increases, many investors will think that the value of the stock increases and start to buy shares. if it reaches a resistance level, everyone will sell their shares. Those people buy shares for a high price and sell when the stock reaches a support price I mean a low price. So many intelligent investors like warren buffet use this opportunity and make huge profits in the share market.
"BE GREEDY WHEN OTHERS FEARFUL
BE FEARFUL WHEN OTHERS ARE GREEDY". -WARREN BUFFET
With this, he tells that he buys a stock when others fearful when the market reaches its lowest point in a minimum price, and he sells the stock when others are greedy with buying a stock when it rises so that he can make a huge profit.
So, try to understand and know about investing of investors psychology.
5.NO TIME? SIMPLY DO SIP:
Many people have thought and fear that they need to invest big in shares and try their luck to get money intraday.
The answer to that question is so simple, that if you can analyze a stock chart and can find out when markets are low, you can do a big investment. But you don't know how to analyze charts just do a minimum investment and try avoiding intraday trading.
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