The stock market has always given immense opportunities to people or secure their money and simultaneously grow it. Check here all you need to know.
The stock market is never about knowing everything. Because honestly, no one can ever know everything about the stock market. For better and more profitable trade and investment decisions, you need to understand the market well instead of knowing it well.
The things you know about the market will change someday. But, the things you understand about the stock market will support the reasoning for changes in the market. There are people who look to analyze the market with practical approaches like demand and supply and other technical strategies. On the contrary, others encounter the market with fundamental strategies. Both strategies are poles apart yet help traders and investors in tracking the same stock market.
The stock market has always given immense opportunities to people to secure their money and simultaneously grow it. But still, some people are able to grab opportunities whereas some stick in the same loop of 20%-30% gains.
Even if the stock market is said to be the easiest code, no hacker is made to hack this code. Neither will any hackers ever be made. The trends, prices, volatility, and market emotions change with each passing second. Be it a beginner trader or an experienced trader, they all learn something new every day.
Here are some tips and tricks shared by Sooraj Singh Gurjar, Founder and Managing Director, Get Together Finance (GTF).
Trader Better than Others
There are a plethora of strategies being taught in order to master the stock market. Some involve fundamental analysis, some involve technical analysis. But as said earlier, the end goal is the same for both; to make profits. When you sit to analyze the market, here’s what you should always keep in mind:
- Never think never: Many people always think of seeing the market with the perspective of finding long-term opportunities. They overlook the fact that there is always a chance of the market falling down. It’s good to have a bullish vision, seeing the growth pace of our country, but always consider a bearish scenario. When you get confirmation bias, you tend to find fewer opportunities. If you have mastered your strategy well, it might tell you that the market is going to fall a few percent. But your bullish vision persuades you to believe the market will never fall this much. All you need to do is never remove this from your mind. Because anything is possible in the stock market, be it sudden booms or sudden falls. And when you see the market from this perspective, you convert downfalls profitably.
- Protect Before Profiting: Before you try to make profits from the market, learn to protect your money from the market. Because we can only make money from the stock market with the help of existing money. Profits are secondary. At the primary level, learn to protect your invested money. Apply appropriate risk management strategies, and take the help of financial advisors. Most importantly, learn before trying. Your hard-earned money should be protected at every cost.
- Acceptance is the key: When you have learned to see them with an open mind and know how to protect your money, know that 100% accuracy in the market is a myth. No matter how strong your strategy is, attaining 100% accuracy is next to impossible.
For example, if you take 10 trades in a day, there are high chances that 3 out of 10 trades might fail. But, the key to a better trading career is accepting this loss by looking at 7 successful trades. Never get into the loop of recovering these losses from the same trades or the same stocks. It leads to revenge trading, which even vanishes the profits you made from the last 7 trades.
Navigating the stock market can be difficult, especially for newcomers. However, with a commitment to learning, discipline, and strategic preparation, budding investors may confidently navigate this terrain. Remember that the key to success is not only profit but also acquiring a thorough understanding of market dynamics and constantly honing your investment skills. Newcomers to the stock market can prepare the road for a successful investment journey by using these ideas and tactics.