When you’re serious about building a solid stock portfolio, falling prey to common mistakes isn’t an option. Every step you take must be well calculated, analyzed and expert-backed to hit all the chords perfectly. However, ours is a real trading world, where few things are completely flawed. For someone beginning on the scene, the biggest problem is trading for the wrong reasons.
Tomorrow I will invest some of my savings in the stock market and by next week it will double. I’ll reinvest the profit and do the same in the following week until it makes me a million.
As flattering and popular as that “goal” is, it blurs with dream and wish. Unrealistic with no definiteness, needless to say, it would fail to transition itself in good outcome.
You did all your calculations, analyzed everything, and then analyzed it some more. You invested in the stock market and put yourself in a position where you’re sure you absolutely cannot lose—or so you thought.
Sadly, we live in an uncertain world, where dreams hardly do come true.
There are only a handful of “success rules” for the stock traders. One, don’t put all your eggs in one basket; second, don’t invest money that you can’t afford to lose. While the first one risk huge financial loss, the later one risk your lifestyle and livelihood. And we’re saying this with no exaggeration!
“Have no fear of perfection—you will never reach it,” said Salvador Dali. The quote is as true as it gets. No wonder people advocate striving for excellence and not perfection.
Sadly, this is something that many new-age stock traders don’t really understand. These are the traders who are in quest of a “perfect” trading strategy. Needless to say, this fields indecisiveness and delays in making decision, often costing the traders a significant portion of their potential return.
“Hustle”- that’s the first thing expert teaches the new traders. It’s one of many glamorous terms and rules on the trading scene. Sadly, while as powerful as that instruction is, only a handful of people really manage to hustle in the stock market. These are the successful traders whose stories we read to keep us inspired. The rest… they struggle with a meager return from their investment. They are the victims of Analysis Paralysis.