Have you encountered any psychological challenges when you trade?If you have, how did you solve them?I'm sure everyone who traded stocks will face our greatest enemy (even Warren Buffett): emotional trading such as panic sell, FOMO (fear of missing out) and greed.
Emotional trading will made us lose money hence we must avoid it at all cost. Below are 5 suggestions:
1. DCA (Dollar cost averaging) To avoid panic sell and FOMO, one best strategy is to buy at regular interval until you complete the amount of share you want to acquire and don't try to time the market.
2. TA (Technical analysis)You can predict price trend by studying indicators (MACA, BB: Bollinger Band), candle sticks pattern, MA (moving average), trend line and reversal pattern (triangle, head & shoulder, TDS9 etc). TA can boost your confidence in trading.
Moomoo has easy to understand resources on TA. Currently I'm attending a group to learn TA called 'Learn Premium Group' conducted by @Moomoo TA Cici - strongly recommended.3. FA (fundamental analysis)Know the company by reading analysis data and company's earnings. Understand the macro conditions and buy stocks based on fundamental and not share price. The information will give you conviction to hold the stock during a bear market.
4. Mental well-beingHave a healthy routine to eat healthy and exercise regularly. Get enough sleep and practice mindful meditation. Spend quality time with you love one and friends; if you stay alone at least play with your pets. You need a healthy mind and body to made good investment decision.
5. Investment goal and planWhy do your invest?
What is your profit margin or ROI target?
What is your stop loss limit?
How much emergency fund to keep?
How do your diversify your investment?
What's your risk level?
Set you investment plan by asking the above questions. Stick to your goal and plan to avoid greed - avoid YOLO all your hard earn money and invest within your mean. There's nothing wrong to invest in something with low return but stable (high return=high risk).
Bottom lineWhen there is greed, scam is everywhere.
Unfortunately investment scam can make you lose your hard earn money and we must also avoid. Always invest with a reliable brokerage. If possible discuss investment with your family members; if you stay alone, check police websites for scam alert. Apply this rule: if the offer is too good to be true, it should be a trap and don't accept.
Revelation 6 : Good morning @MooMamaLlama. Long time no hear. Where have you been?
intuitive Jackal_354 MooMamaLlama : congratulations, I hope she's healthy and mom is doing well. [Party][Cake][Fireworks]
MooMamaLlama : great write up @ZnWC
MooMamaLlama Revelation 6 : hi @Revelations 6!! I know it feels like a while to be offline so much, I've been celebrating the birth of my granddaughter, born last night!
MooMamaLlama Revelation 6 : and good evening, lol! it's 11.37pm here.. but market opens soon