You are here

Invest In Yourself! The Basic Skills That Will Help You Succeed In The Stock Market

Whether you have
been investing in the stock market for a long time or if you plan to do so now
due to the poor performance of fixed income, you must bear in thought that
investing is not a game, since, in the end, we are managing that saving that
has cost us so much to accumulate. Several mistakes are often made when
investing, and it is always good to have some golden rules to tackle investing
in the stock market successfully and taking share market classes is advisable
to reduce the risk of mistakes.We will analyze
five skills that will help you face your adventure in the markets with more
guarantees. To have solid and sustainable profitability in the long term, the
psychological component is more important than having excellent knowledge of
finance or accounting. Not buying when everyone else does or selling out of
panic leads people without excellent expertise in the matter to have enviable
portfolios. This applies to any financial product, be it stocks, mutual funds,
or whatever vehicle through which you usually invest.PatienceMost people who
put money in the stock market consider themselves investors, not speculators.
However, each time the holding period of a share or a fund is shorter. Years
ago, stocks were held for years or even decades, and now the average is less
than a year. Undoubtedly, being able to buy or sell with a simple click has
helped this increase in operations.Nevertheless, if
you are an investor with a long-term time horizon, it does not make much sense
to conclude the short term. It does not matter that the price of a company
moves a lot or a little during three months; the company is not worse or better
because it has risen or fallen by 10%.If you have a
home, you are not looking at how much it is worth every day. Furthermore, when
you invest in the stock market, you buy part of a company or a fund, not just
stock. Therefore, even if the price of the stock changes, its value may not.ConstancyTo be able to
invest in the stock market successfully, perseverance is essential. If you
start investing and your shares lose value, it is necessary not to stop doing
it. If you think that Reliance at 2500 rupees is a good investment, wouldn't it
be even better at 2000 rupees if the company's fundamentals have not worsened?The usual thing
in the markets is that people enter the euphoria phase (when everyone makes
money, you don't want to be the only one left out) and leave when the bubble
begins to explode at a loss.Critical spiritThere is
constantly a lot of noise around the markets: analyst reports from your broker,
the specialized press, blogs, Twitter, etc. The investor must have sufficient
judgment to know what information can be helpful to consider in his investment
and whatnot.You should
always think about whether there is a conflict of interest behind that report
you are reading, as it is usually the root of many problems.This same
skeptical attitude must be observed when we analyze the information provided by
the company itself, especially concerning projections about the future and
corporate operations.ModestyBillions of
rupees move around the markets, and everyone has the same goal: to make money.
Think that the one that sells you the stock you are buying may be an investment
fund or hedge fund made up of brilliant mathematicians, physicists, or even an
algorithm that operates autonomously.What have you
seen that they have not seen so that they sell and you buy?It is imperative
not to lose that outlook when we are in moments of euphoria with our portfolio
with juicy benefits. In the end, the market is cruel to those who think they
are brighter than it.It may even be
good that the first operations are not very successful not to lose respect for
him. Imagine that you do two functions, and they turn out well by sheer luck
due to the frenzy of the market. The danger is that you are encouraged and
invest larger amounts of capital that could later lead to significant losses.Learning
capacityIt is not
necessary to have extensive technical knowledge in the matter to invest in the
stock market. However, it is good to have clear ideas and learn from our
you write down the operations you carry out, the reason for the purchase, and
the sale. In perspective, when you review them over time, you will see where
your most significant weaknesses are.Some people sell
too early, others too late, etc. You don't always earn money for a good trade.
You can win it even by making a mistake, but that is not sustainable.To learn the art of stock trading one must take share market classes to better
prepare themselves for investing in share market.