Trading has been considered the hardest and the fastest way to double your money. However, are you sure you have invested at the right place? Are you getting the maximum out of your investment or are there factors influencing your decisions?
Peter Switzer of Yahoo Finance suggests that it is highly recommended you do not just go with your instincts! The only way to gain that assurance is by regular market practice. This is sure to work as a motivator. You have to be sure that your instincts are no over-shadowing your decision making.
We face peer pressure since our childhood and feel confident to lose it as we grown older. However, even without our conscious thinking, we fall victim to various situations. One most common peer pressure is to adhere to the practices of your group of friends and colleagues. Perfect instance is the practice of trading. Some people may not even understand the intricacies of the stock market but tend to invest in as they hear people around talking about shares rising, crashing and its endless charms. Trading here would be gambling such as getting into a business with its limited knowledge.
Let’s identify if a trading practice can turn into a gamble.
Trading for Adreline Rush
We come across a few people who enjoy the thrill of the unknown. Most common individuals who fall into this category are the ones who are socially obligated and like to be a part of a social circle involved in the excitement of losing, gaining. This is what gambling is.
A good trader is one who takes a lesson from his loss and accepts his mistakes. He keeps a keen tab on the market and identifies various factors affecting it. One may not be an excellent decision maker while trading but if you should be sure of your actions and no act due to social belonging. Then, trading turns into a gambling. Thus, you should be wise and invest wisely.