Trading on the stock exchange is a laborious job that requires knowledge, a calm nervous system and pedantry. But when people see an advertisement for the next 100% profitability and call trading in stocks a game on the stock exchange, the question arises whether investors are ready to invest on the stock exchange.
There are only 4 mistakes that are most likely to lead to the crash and loss of funds for any trader. Save, remember, write down and never forget:
- Trading on the stock exchange is not a game, not a casino, but work. And you have to approach it like a job. If you have noticed signs of excitement, courage, then think a few times before you start trading. This requires financial analysis, accurate calculation and composure of actions.
- You can't go all-in… Imagine that your forecast turned out to be correct and the indicator of funds on the account is growing at an incredible pace. And so deal by deal. You are tempted to invest all the money in this string of successes. Ask yourself the question "What if?" You should always reserve funds for the minimum necessary needs.
- Unjustified risk. There is an assertion that with an increase in risk, profitability rises proportionately. But what happens when risk rises and returns don't? Or does risk grow more than profitability? In these cases, you should stop and re-analyze your trading, since the probability of losing funds is higher than the potential income.
- No borrowed funds… If you take out a bank loan for investment on the stock exchange, then there is a risk of losing them. Trading on the stock exchange is a job whose profitability is not guaranteed. But the loan will have to be repaid in full plus interest.