Why your share market investing is failing?

Every investor has several characteristics that combine to make them successful. The success rate depends on how well you can implement them and how well your strategy works. How investors choose the stocks they want to hold in their portfolio is probably one of the most important areas of being a successful investor. For me personally, I have stuck to picking stocks that lead, i.e. blue chip companies whose price history is in a long-term uptrend and which themselves are performing better than the market average. Another important part is the business plan. This doesn't have to be overly complicated. You just need to know what to do if the stock price goes up, down or sideways. If you can cover those three things, then you have the unpredictability of anything the stock price can throw at you. More importantly, you will avoid reacting to sudden market swings that happen all the time. The trading plan should also include the overall strategy for the stock you have chosen and explain the reasons why you are doing what you are doing, i.e. why you have decided to enter the order level at that particular point. You will need a robust risk management strategy and to be successful in the long term you will need to implement the strategy. The number of times I've seen people unwilling to act on a risk management plan when the stock price reaches its predetermined value is kind of scary. The above three things are great, but remember to be disciplined in implementing them or you are setting yourself up for failure. And you should remember that to be good at anything you have to practice and you have to gain experience. Champions are made in training. Not on the track. After identifying these strategic factors, you should consider how much you are willing to spend on each promotion. It is important to try to spend the same amount on each stock, i.e. $5,000 in a portfolio of 10 stocks in different industries to maintain a balanced portfolio. Finally, before you decide to go ahead with any investment, you should assess whether its return risk is worth it. There is no point in risking $1 and trying to make 50 cents. I have stuck with the 1:3 ratio throughout my investment life. For every dollar I risk, I make at least three, or if I make $3,000 from the trade, then I'm willing to risk $1,000 to do it. The reason for this ratio is that no matter how good you are, you will always lose some of your investments. A ratio like this ensures that when the investment pays off, it more than makes up for any loss. To recap every successful investor must exhibit these qualities over the long term. Take responsibility for yourself and make your own decisions. They take credit for making a profit and accept responsibility for any losses. They learn from these decisions and improve over time; Create investment or trading plans and stick to them Create trading plans based on reliable information in the clear, calm light of day and not on emotional reactions that may arise from panic or euphoria in the stock market. And he sticks to his plan; Assess the risk/reward ratio of each trade Only enter into investments that offer reasonable profit potential; Manage the risk of each investment. And never lose too much; Allow contingencies in the plan so they know what to do if the price of the stock being traded goes up, down or sideways. The stock price can do nothing else. But you can do what you have planned. The plan then dictates actions and prevents unprofitable emotional responses; Invest your money only in financially secure companies; Buy stocks when they are cheap and sell those that are expensive relative to their price trends; Trade only with companies whose prices are rising; Trade without emotion and have the discipline to trade with a plan. They plan the trade and trade with the plan; Keep pulling money out of the market. You only make money when you sell shares; and have sufficient confidence that has been gained from experience.

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About Author

Myself Sher alam, A dynamic professional with a Master's in Business Administration, specializing in Business News and the Hotel Industry. With a passion for writing, I honed my skills in crafting insightful articles that delve into the intricate workings of the business world and the hospitality sector. These articles offer valuable perspectives on industry trends, market analysis, and strategic insights, making him a sought-after contributor in the realm of business journalism. My dedication to excellence and his profound understanding of these domains set me apart as a prolific writer, enriching readers with compelling narratives and actionable knowledge.