People love to safe and in most cases they like to be able to predict things, at least to a minimum. At the same time, but they want to make profits, the more the better. And unfortunately high profits are usually associated with high risk. Feel the dilemma here? Of course, a solution to this dilemma is to just relax your money in a savings account, and just collect a little interest. If this sounds good to you, well, good for you, but do not bother reading the rest of this article.
Which means that if you're reading this, you're probably not satisfied with the meager income from savings accounts today and you want your money to work just a little harder for you. But you would still like to minimize your uncertainty right Let me make a prediction with a very high degree of certainty.
When you invest in the stock market you will inevitably:
- Make some times
- Lose money some times
That should at least cover the uncertainty factor. Maybe this sounds a little simplistic, and if so, well, it should. Because the point I'm trying to do is very simple. You just can not make money every time you make a transaction. Even Warren Buffet does not make money on any investment he has ever made money. The best investors and traders in the world to lose a certain number of their transactions money. So do not get hung up when it happens to you.
Fortunately, it is very difficult to get the time you invest to lose money. Maybe you can find some people who claim they lost on every investment they've ever made, but the likelihood is that they find not to tell the truth. They also made money on some of their transactions. But they probably re-invested that money in other stocks that end up losing money. It's a lot like the man sitting at the slot machines. After playing for a while the machine starts chucking out a whole bunch of coins resulting in a nice profit. But rather than call it a day and taking his money home, the man just keeps pouring money into the machine until the last coin. Then he goes home wondering why luck never comes his way.
It is important to lose the reality some money from time to time the face and right with her. This does not mean you should feel OK every time you lose money. Your goal should always be to make a profit. Just be aware of the fact that you can not realistically expect to make every time profit. This will relieve some of the anxiety of not, because to lose money on an investment does not mean you've failed as an investor. Many people never get started, just because they are afraid of losing money. And when they lose money, they feel that they have failed and withdraw from the stock market as a whole, never to return.
If this has not happened yet personal, just look around. Before Can you remember a time when either a colleague or a family member that you would inform their investments often? Just about every time you bumped they would tell you how good their stocks were doing and how much profit they make against them. And then, suddenly, they completely dropped the subject. You heard them never to talk about. And if someone asked them how their stocks were doing, they would either mumble something inaudible or utter a kind of defensive statement. What happened? They lost their money and withdrew from the activity in the market. They have essentially given up, and in doing so, they have lost. Not because they lost money because they gave up.
If you want to be a successful investor you can not be like that. The already giving may pop up in your mind when things do not seem to go your way, but you should never admit to it. When it comes to success in investing your attitude is more important than knowledge, as in many other areas of life. Now, I'm not saying you do not need knowledge. You should try to learn about investing, at least enough to have a basic understanding of how the stock market works to get. Nor do I say that it's OK to be an idiot and do not learn from your mistakes. You have to learn from them as much as you possibly can. Just realize that you will not be right 100% of the time and as long as you invest in stocks, you will not be able to avoid making mistakes.
So before you put your money in the stock market or any other investment for that matter, remember this: You win some and you will lose some.
Eri Rahman is the owner of , a fine free resources for training and education in stock trading. He also maintains , a very useful resource for savvy traders.
No comments:
Post a Comment