How bad is losing?
Have you ever experienced that feeling when you’re ready to make millions, you have read a lot of news which you think might help you to pick the right stocks, you have asked many more professional traders about their insights and feel like you are becoming one of them, you are confident about what you know and all the more excited to secretly or openly confess that you are a genius because you making money (you just gained a hundred- you’re an expert!). And then suddenly the bear has gotten out of your portfolio, your stock picks dropped in value and your false hopes battles with your motivation and you start to ask, ‘WHY AM I LOSING IN THE STOCK MARKET?!’
The same question may once or often bump into your mind. This is the kind of set-up most of the people avoid getting into- that unknowingly limits their capacity to take advantage of the process of mastering it. We become so used to self-comfort through avoiding risk that we tend to embrace our current financial woes and take small and limited steps because we anticipate the fear of losing. The fear that every ‘failure’ will cost us something instantly deprives ourselves into investing in something that really matters, which is the freedom to realize our own-self.
All of the traders have the initial drive to make their money grow before entering the market but when the real battle begins they become restless and they couldn’t think straight when the red figures visits their portfolio. The thing about losing in the stock market is that it has its way of correcting our wrong move and improving our self every day to be as rational and make the right decisions even at smallest period of time.
When our stocks lose value, we couldn’t afford to think of giving up the idea that it could have done something more for us. We want to prevent the loss but can’t bear of selling the position by waiting for the loss to subside because all we put in ourselves is the gain (which creates a zone of BIAS).In a perfect world, whatever we aim is easily achieved and we can do whatever our beliefs tell us. But because the real life rotates at a world of difference, every PRINCIPLE becomes subjective and we have to look at the other way around in order to make sure that this strategy is working and effective.
Losing in the stock market is a normal event that had to be addressed by the individual investor- whoever he or she may be. This isn’t to say that rebounds never happen it only tells that traders should develop a buying strategy and a selling strategy of their own preference.
Very truly, there are no simple rules for buying and selling. A strategy that’s successful for one person might not work for somebody else because all investors are different. This requires you to work on the power of your mind, explore yourself and create a strong and resilient mindset to adapt your own investing style to make the best possible strategy to get ahead and figure out where you’ve been wrong or what is it that wronged you. This will lessen the chance that you will not end up being consumed by odds at the end of the day.
While there are a lot of possible answer to the question- maybe it is that lack of knowledge about fundamental and technical analysis, not establishing risk limits, emotional attachments, riding the bandwagon without having valid entry and exit reasons, holding positions too long out of greed or fear, over and under looking of potential trades, weak market conditions and seasonal bear and bull markets race or habit of offensive strategy trading.
It is so hard to find the right answers when we do not know the purpose of why we are asking it. The real answer then comes only from us. The temporary defeats often comes before the unfolding of greater opportunities where we can develop the security in self-reflection,the acceptance of every wrong decision and the will to improve it, the mobility to let go of the past, and the mastery of the art of overcoming oneself. Those who want to succeed therefore must be willing to fall flat on their face, accept the defeat and transform all it as a fuel and drive to soar higher because sometimes losing is the only possible way of winning.