Wishing You a Joyous Dussehra! Celebrate the victory of good decisions in your financial journey!
Build a Balanced Portfolio: Get 20% off on two or more services. | Avail Offer
Wishing You a Joyous Dussehra! Celebrate the victory of good decisions in your financial journey!
Build a Balanced Portfolio: Get 20% off on two or more services. | Avail Offer
SEBI Registered: Research Analyst | Investment Adviser | Call: +91 97730 15000 | Email: research@stockaxis.com
12934 Views | June 19, 2019
When the markets are falling, investors are often hopeful that things would become better and the stocks in their portfolio will regain their lost value. On the other hand, in a rising market, they become fearful about losing out on the profits they have gained, and sell their holdings too soon. Hope and fear are both common emotions found among investors, which results in making mistakes in their investing decisions. On the other hand, information and knowledge are weapons that investors can use to overcome their fears and relinquish the need for hope alone.
The underlying problem is not the emotions, but rather the lack of background knowledge and information. Armed with knowledge, you will not fall prey to hearsay and unsolicited advice. Historical research can give you insights in the workings of the markets and improve your understanding, but more importantly, it will help you break free of the bad habit of falling prey to your own and other people’s emotions. These habits come in many forms and shapes:
Whether you are a new investor or a seasoned one, formulating a system that you can follow without exception will make you more disciplined and less prone to resting on hope or being driven by your fear. Some steps that you can take are:
It is easier said than done to be objective, but setting a few parameters is helpful for investors. When you overcome your fear and greed, you will gain new confidence. Now is the time to learn from past mistakes and build a new investment strategy. Learn the essentials of successful investing. Get to know about StockAxis comphrenshive advisory services. Happy investing!