Have you ever pondered what is the thing that pulls us towards the stock exchange? And have you ever tried to analyze what mostly causes big losses in stock trade? The answer to both these questions is one - greed, in broader terms.
Let us understand this.
In fact, greed is the first instinct that entices you here.
You want more money than you have, and this is the reason why stock market looks promising to you.
Moreover, the market shows you a glimpse of easy money, something you may call smart money.
And those who jump blindly and exercise their greed and impatience in the trade lose, whereas there are those who win millions, just because they proceed step by step with patience and prudence, exercising their wisdom in every step, starting from making the trade investments right up to choosing the right broker.
The winners are not winners because they were born with the skills required in stock trade, they won because they knew what they lacked as the skills and worked on them, learning something every time they confronted with stocks.
Most of the people enter the stock market with great hopes, and of course, after taking in a lot of suggestions.
Their well wishers tell them thousands of times to trade carefully.
Knowledgeable people suggest them to be careful to avoid whimsical decisions and to play it cool.
They stick to all these suggestions, after winning in a couple of small stock trade investments, suddenly they are urged by their impatience to play it big.
If they succumb to it before properly understanding the exchange and its subtle mechanisms, they are very likely to face loss.
Perseverance and patience are rewarded in this market.
The slower you go up, the stronger your plinth becomes.
The closer you look at the market, the more understanding you gain about the stock trade and hence, the more you profit from it.
When you go for stock trading, remember these two tips: CHOOSE A GOOD STOCK BROKER: When you start, you have no practical experience.
At this time, a good stock broker is almost mandatory for the proper information, suggestions and other help.
However, affording broker was a big concern for the beginners in a trade.
This is because the commission rates of traditional stock brokers are often so high that the beginner, who is usually intended to make small investments can't make any profit due to the high commission rates.
This compels the beginners to invest bigger money, and hence, to take bigger risks.
However, in the present days, the emergence of online stock brokers has lessened the lower limit of the commission rates, thus proving favorable for beginners.
INVEST IN AFFORDABLE AMOUNTS: How much you should start with, as an investor in stock trade, is a matter of how much your income is.
You should trade only that portion of your income that you can afford to lose.
This will always keep you prepared for the worst and save you from any trouble.
But don't think that you will have to trade stocks all the way like a child's play, investing small amounts.
It is necessary for the beginner, so that you learn what the market is exactly like.
Once you learn enough experience, you can exploit your understanding to win from bigger deals.
But whatever it is, even in the later parts you can't part with your cool.
However, you will learn to be cool easier then.