Today, we are going to talk about a basic thing that we face every day while investing in stocks, like we always say that there are many signs we should take care of, if you want to be a great investor, because these signs give a notifications and info, that will tell us to stop trading or not, if we ignore these signs we will fail.
This article is going to give very good tips about these signs and what you should do in order to make the best choice.
For example: while you are using your cell phone the battery starts to give you an alarm to charge it. In this case, you have two things to do:
1st: stop using you cell phone.
2nd: you want to keep using it and you don’t want to stop.
Now, you get only two options, and definitely, there is no third one.
Investing in stocks has a very important factor that controls everything and this factor is (RISK), so what about the risk in these two cases?
1st case:the risk if you stop using it, so your cell phone will be ON for more hours.
Investing risk here will force you to sell your stocks as fast as you can in order to gain money and avoid losing.
Let’s say you gained 500 USD.
2nd case: if you want to keep using your cell phone, no doubt that after the alarm the cell phone will turn off, and you are not going to be able to use it.
Such as, investing in stocks if the market gives you an alarm to stop trading and you ignored it, defiantly you will lose; let’s say you lost 5000 USD.
We recommend you whenever the stock market gives you an alarm to stop you have to answer it, because if you keep going you are going to lose, don’t say : I’m going to gain a small sum of money, just think about losing because you will lose more money if you ignored the alarm.
If you take a look again at the two cases above and compare them, you will find that in the first case you could save your money because you worked for the alarm, and in the second case you lost because you ignored the alarm. The big risk is in the second case, as for the first case there is no risk. No matter how much money you gained in the first case because you avoid losing.
Let’s talk a look one more time from a different view, if the stock market gives you an alarm that everything is alright and if you keep going you will gain more money:
Same as above you are going to have two options:
1st, you stopped investing: so you will get a small sum of money and the risk here will be losing a good opportunity that could make you get more thousands of dollars.
2nd, if you keep going: you will get more money and risk here will be 0%, so there is no need to think about it.
Every time you find the good signs from the stock market don’t be hesitated just keep going and vice versa.
The two cases above are different but both of them depend on the signs and the green and red alarms from the stock marketing.
So, during your investing in stocks process always keep your eyes on the stock market charts in order to where you are, are about to gain or about to lose?
We hope you use this strategy in order to make what you looking forward to doing from investing in stocks.