Understand the costs and benefits
At the start, you may not fully understand the costs and benefits of each and every decision made, whether to buy, sell, hold or even just spend time watching and studying particular stocks. Over time, you may have developed certain strategies that have proven to be successful, but always be mindful of the potential pitfalls and costs that can come and be prepared for it.
In a bull market, always understand the opportunity costs and trade-offs of buying or selling shares, and make sure that you are able to cope with any sudden changes; likewise, in a bear market, if you strongly believe in a company, selling shares of that company will not do that company any good, it superficially paints a bad light on their company as well. Do not be too greedy, and do not panic too easily.
While mindsets are important, the most important factors when dealing with trades is the logical understanding of costs and benefits of different actions.
In a bull market, always understand the opportunity costs and trade-offs of buying or selling shares, and make sure that you are able to cope with any sudden changes; likewise, in a bear market, if you strongly believe in a company, selling shares of that company will not do that company any good, it superficially paints a bad light on their company as well. Do not be too greedy, and do not panic too easily.
While mindsets are important, the most important factors when dealing with trades is the logical understanding of costs and benefits of different actions.
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