The path to the stock market is not easy for many newcomers. And mistakes are often repeated.
Turn off emotions
The first rule of an investor of any level is not to give in to emotions. A calm mind allows you to see wider and make 70% more successful transactions. There is no need to monitor the price of a purchased stock or other asset without stopping. If the yield has gone into negative territory, it does not always mean that an asset needs to be sold urgently.
Following the strategy of Warren Buffett-invest for a long time and do not react to market fluctuations, buy shares of promising companies. Such rules will allow you to save sleep and not strain yourself on small price jumps.
Master the trade
If you enter the stock market in order to make money, do not delay the actions themselves. There are options for demo versions where you can try trading securities. But only on real transactions comes experience and practical knowledge. It is important to feel the market and then there will be no fear of missing something.
Learn, broaden your horizons
Contribution to one’s own learning occupies a significant place. And we are talking about different spheres of life: history, psychology, mathematics, philosophy, and so on. A successful investor is someone who is constantly on the path of research, who does not fall out of the information field. It is worth allocating time for self-education.
Prepare for risks and drawdowns
If there is a big fear of losing money, then it is worth starting with moderate investment instruments. They will not bring much profit, but they will help to adapt to the market. Gradually, you can increase the degree of aggressiveness of the tools. You should enter the asset with a clear understanding of how much you are ready to lose. And if there is a drawdown, do not stop, but move further along the strategy.