A MENTAL GUIDE FOR BEGINNER INVESTORS TO SURVIVE IN THE STOCK MARKET
Many investors initially enter with high spirits, but gradually withdraw after encountering the initial pressure. In moments like this, mentality
Surviving in the stock market is often more difficult than starting out. Many investors initially enter with high spirits, but gradually withdraw after encountering the initial pressure. In moments like this, mentality plays a crucial role.
This is a major mistake, and I've observed several stock trader friends frequently make it. I summarized at least four common mistakes beginner investors make when investing in stocks in my previous article.
In moments like these, mentality plays a crucial role. This is what slowly makes us realize that the biggest challenge in stock investing isn't just strategy or capital. It's also our ability to accept the reality of a market full of uncertainty.
Realizing That There Is No Certainty
From personal experience, the stock market never promises certainty. Stock prices can fluctuate wildly beyond anyone's predictions.
If we can accept this fact and reality, our mentality can be calmer and our expectations more realistic.
Market pressure often triggers excessive emotions in investors who are not prepared to deal with panic when prices drop.
This is one form of mental error that makes it difficult for stock investors to profit. I've covered this topic in another article, titled Mental mistake that make it difficult for investors to profit in the long term.
Therefore, the next tactical step is not to try to beat the market, but rather to refocus on aspects within one's control.
Focus on What Can Be Controlled
An investor cannot control the stock market situation, but they can control their own decisions. Therefore, focus solely on matters concerning the amount of capital to be used, risk management, and discipline.
This is far more beneficial than being preoccupied with guessing the direction of market movements. Managing Expectations From the Start
Realistic and reasonable expectations are a strong foundation for long-term sustainability. Gaining profits gradually and consistently often leads to more success than chasing large, short-term results.
Making Investing a Long-Term Process
Investors who endure are those who view investing as a long journey, not an instant destination. Each market phase offers different lessons for us as investors.
Growing with Experience
Over time, our experiences will build our confidence. We will become calmer, more selective, and better understand our potential.
With the right and strong mentality, the stock market is no longer a frightening prospect. Instead, it is a learning experience for managing every situation that has the potential to generate financial gain.
Therefore, carefully study the fundamentals of the stock market itself. Check out my previously published article on what you need to understand before buying shares for the first time.
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ECONOMIC AND BUSINESS