How to Handle your Losses

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Stock investing is the shortest way to make money and there are many people afraid to start because of losing. This kind of investing was built on knowledge, experience and rules so you can handle everything about it because it is not a money game.

So, we will diamond everything about investing in stocks and losses and how to handle your losses.

We all know that when we start trading in stocks we choose this way to make money, but it doesn’t mean that we have to focus on only money because there are many things we have to focus on in order to reach our goal (money).

For example: if you are making a new project with a new partner and this project will make you gain more money is it logic to say yes, on every condition you partner say? Of course not, because you have to grantee your rights and your money.

This is how it goes in the stock market when you deal with it, you have to protect your money from losing it, so you have to be careful during trading, forget about money, forget about everything just remember that you have to protect your money.

Let’s make it simpler; when you invest in stocks you will face 2 things:

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1-   Gaining: definitely, in this case, you are going to be so proud and so happy because you started to make your dreams come true.

Also, you are not only making money but you built a self-confidence too.

2-   Losing: no doubt about being angry and sad whenever you lose in stocks and you are going to put the blame on stock market’s factors, investing, politics, circumstances, and etc.

So, why you don’t say (I’m guilty)? Because you don’t want to admit that, but actually, the blame is on you.

If we take a look at the first case, we are going to find that, you are the one who determine to gain or losing, such as a crossing the road you can decide what is the right time to cross it in order to not to get hurt, and don’t say that the car was running fast.

Best Strategy that will Help to Choose Between Buy & Hold

All you have to do to save your investing, is having accepting losing concept, as many great investors always tell us to accept our losses and we have to be tolerant of it every time it happens, if you are not, so stock trading will be the worst decision you have ever made and try to find another new way to make money.

You have to get used to losing during investing and you have to learn from your mistakes, try to say: I made a mistake; I had to search more about the company, this decision was wrong and etc.

Put into consideration that, you will never be a successful investor if you don’t have a losing tolerance.

Remember, what we mentioned above that investing in stocks was built on rules and knowledge, so there is no need to be worry, because it is going to be very easy when you learn it, and these factors will help to control you loses, you can learn new strategies as well and work according to it in order to avoid losing.

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Do you know why we said you have to put the blame on you, because if you study it hard and become aware of the stock market and its factors, definitely you will not lose?

From my point of view, you can take stock trading as an exam you have to be prepared well before taking it.

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Published on: May 25, 2016

Filed Under: Beginner's Guide, Home

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