The fact was as follows: 80 percent of private investors lost money on their direct investments.
This is the secret that Wall Street does not want you to know. I suppose it could be worse. I remember reading years ago that 97 percent of all players in the UK waste time.
There are several reasons why most investors lose money. The main one is undoubtedly due to knowledge. Although it is not my intention to suggest that insider knowledge is used, it is difficult to imagine that some unscrupulous traders are not involved.
What is most important is that many more private investors or simply not doing sufficient research on the companies they plan to invest. Company accounts do not look or only briefly. Competitors are not evaluated thoroughly.
The stock market is a very competitive place to earn money. All appliances red using the investment banker types take the game seriously and so we have private investors, if we intend to win.
In fact, the stock market is so competitive that sometimes even some of these investment banks did not make a profit, despite all the advantages they have over the rest of us.
Therefore, private investors have to work very hard to compete. Maybe. The markets are so great that many private investors can get a comfortable living online.
It is also vital to be disciplined and follow the investment and business interest very closely. If you need to sell out at a moments notice, the discipline required to do so immediately. If you can not afford their benefits and, potentially, your initial investment as well.
As prices change, so their goals. Using a stop-loss or some variant can help your sales strategy, but when it's time to sell, you have to.
Before starting his own personal odyssey in stock market, you need to invest time and effort to learn the basics (and some more advanced) skills. These will help in the coming years. You should then commit to continuously improve their knowledge and skills. This is what will keep you in "the game".
You can also find you need some sort of monitoring software. Many services allow data to real time price. This will help you track your performance accuately in time and alert you to any important news about their companies. For medium to large investors, software, worth its weight in gold.
As time passes, you will need to understand the basics of asset allocation. This will help prevent you from having all of its assets invested in company stock and thus help provide greater stability in their personal finances. As your net worth grows, it becomes increasingly important to diversify so that their future is tied increasingly to the results of the stock market.
In conclusion, the stock market is a place where fortunes can be made and lost, but only hard work is likely to thrive. Good luck.
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