"It is in everyone's best interest to go for the one which is more powerful and successful. On the other hand, during the process, we make an effort to feel emotional about our choices. We need results as quickly as possible. However, it is impossible to avoid being emotional when we are dealing with financial matters”
We buy fundamentally strong, we sell on news
We buy on news, sell as no fundamental
We buy to try our luck, we sell on panic.
We buy the dip and we stay invested with conviction
It's human to feel sentimental about things. We gain wisdom and insight from our emotions that would be impossible to acquire from doctrinaire study. However, this does not give us license to disregard fundamentals.
The stock market is widely regarded as one of the most confusing places in the world. It's possible that you're curious as to why!
There will always be people with bullish and bearish views on the stock market. There will be chaos as both bulls and bears act at the same time, with the former expecting an increase in the stock price and the latter expecting a decline.
Nobody can escape considering their own mental state while making a choice, whether they rely on fundamental analysis, technical analysis, or rumors and headlines. You can't keep your emotions in check, but you can keep them from influencing your financial choices.
For most of the investors, their investing is driven by greed and fear. Such greed and fear is a result of pessimism, optimism and also level of risk. Those individuals who have achieved a high level of success as investors will consistently advise others not to base any financial decisions on their feelings.
In a nutshell, the market can't possible go up in only one direction. Success, on the other hand, may be just around the corner for those who are able to keep their emotions out of their approach and persevere through the difficult times.
To be able to generate high profits, one must first endure the ups and downs of a roller coaster ride. The most recent few years have been filled with a wealth of experience, beginning with the pre-covid period, continuing through the covid period, and culminating in the Russia-Ukraine war. These cycles resulted in the formation of true investors. These years were the true test of the patience and emotions.
Takeaways
Investing methods may seem convoluted, but there is one tried-and-true strategy that has prevailed throughout the years. The components of this plan are:
Putting money into companies whose stock has solid fundamentals
Fortitude in the face of the markets' wild ups and downs
Maximize your financial potential by increasing your investments as prices fall.
Put your money where your mouth is by selling when the timing is right for you
Hundreds of times a year, the market goes through this cycle, sometimes with little adjustments and other times with major crashes. Those investors who are able to remain resilient during market downturns will ultimately reap the greatest rewards.
Disclaimer
This publication and its author is not licensed investment professional. Nothing produced under Futurefin by Ajit Jain should be construed as investment advice. Do your own research and contact your financial advisor before making investment decisions.