When you ask the average American what they think about the stock market, it’s not surprising to see a disgusted or condescending attitude towards the idea. Many Investors have felt the impact of the fragile markets collapsing and lifetime savings disappearing before their eyes. What a lot of Investors don’t understand is the money that “disappears” is really just lining the pockets of those who are smart enough to play the game without feelings or remorse. Investors need to be confident, alert, and willing to leave any ego’s at the door.
Why is it so important that Investors forget about their feelings or ego’s? Because regardless, your likely to fail. Getting cocky can make the failure seem more prominent than the success and the emotional stress will discourage you to continue. Investors need to know where to buy stock for certain strategies and how to successfully time the entrance/exit transactions. Only a clear, logical, confident and risky (but not cocky) mind will be capable of ignoring the need to “hold on” to those shares one more day or realize big fish buy hype and sell news. Many people refer to these easily persuaded Investors as bag holders- glass half full types with a gullible personality. Day traders feed off these Investors which often play a pivotal role in significant day trades. The quicker you figure out how to control your mind and emotions, the sooner you will consistently profit from trades.
This is an interesting video dealing with Investor emotion control using an example to illustrate the relation to success in the Stock market:
BPAX is one of the month’s best rated
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