Investors' Confidence in Trading Shares
When investing in stocks and equity markets, several of your elements can make your investment more profitable. This factor is the level of confidence in buying and selling when the stock arrives. At that moment, it will break or break your profits. If you lose confidence as an investor, it may spend your investment process going forward.
In fact, confidence is one of the most important factors in your trading in the stock market to get consistent profits from the stock market. If you lose that element, it does not matter how you analyze the stock market or how you look at it. You will eventually enter the position too late or too early to go out, or do not want to enter the stock market!
Why does the confidence level of investors fall? This happens for a variety of reasons, but is usually caused by large trading setbacks or many setbacks cause huge losses. There may also be a lack of information and research on specific stock or market trends. Any trader should understand that not every investment will be profitable. Investments that generate losses are normal because we can not predict how the market will move and how stocks will perform. We should not blame ourselves or too hard.
In fact, we do not know what the order of the prize and the will is. We need to have some strategic thinking about our probabilities. In other words, we must establish a plan and strategy to test it, such as knowing that 10 deals, some of which will be profitable.
What we do not know is in what order these losses will come. In other words, if our opportunity to make us in 10 transactions in seven (70% of the time) to make money, we do not know when the three losses will start, it is difficult to determine the order. Three losses can occur in the first few transactions or spread out over several weeks. Once investors suffer this loss, they will lose confidence and begin to study their strategic plans and want to know what their strategic plan is.
The next time their chance comes, they do not pull the trigger. Guess what will happen next? Single trade will bring huge profits to investors. This is the law of possibility. So there are strategic plans and the idea of this ratio can help investors stay in the investment, more importantly, is able to monitor follow the strategic plan!