It is very normal for small and medium novice investors that at the beginning of their first investment bets the result is negative and logically, they learn hard for their pockets what it is to lose real money due to lack of experience, strategy error or simple improvisation, to the time to enter the market (buy shares) at prices that few weeks later will have been discovered to be excessively high.
Once these first monetary setbacks have been suffered for personal finances and also for the psychological and psychological morale of the less seasoned, it will be the right moment to consider what the main financial mistakes or vices have been and ask these questions: Why? I’m losing money again in the stock markets? … Will I be able to learn not to lose more?
Let’s see below some of the main factors, reasons, vices and basic errors of investment that may have caused the previous results so negative for their interests:
Investing wrongly following the financial news concerned: You should never invest in shares listed on the stock exchange simply by the fact that on the Internet or any other means of financial information say or read common phrases such as: “That will greatly increase their future benefits” … “That their shares may rise 15% in this next year” … “That they will merge with another large company” … “That their shares are 20% undervalued” … etc. We must remember that news interested in the world of stock investment can be generated or used as a tool of pure speculation.
Do not put limits on the operations: Each investment is different and you have to be very clear from the beginning what amount is intended to avoid the temptation to buy back more securities (invest more capital) as they progressively fall in their quotes. Increasing the positions in periods of strong price corrections usually generates higher monetary losses for the investor at the end.
The error of not placing a Stop Loss: This is as simple as putting a stop of protection at the time of proceeding to purchase the shares to avoid accumulating greater losses in the investment. The placement of a Stop Loss (sale order) at prices that oscillate between 2%, 3% or 4% below the current price will limit the losses in said operation.
The vice of not using the indicators or the technical analysis: The bullish or bearish movements in the quotes of the values are not the product of chance or mere chance. The use of technical analysis of charts (charts), trends, volumes, crosses of moving averages, indicators, oscillators, MACD, RSI, Stochastic … etc. It is the basis to be able to have a clearer vision on the appropriate points (quotes, prices) to proceed to buy or sell the shares of companies listed on the stock exchange and thus achieve a greater possibility or percentage of investment success.
As we usually reiterate to our many readers and followers in this section, Bolsa Tips : “Making money in the stock markets is never easy”. Each investor acts for different financial or personal reasons and only a correct discipline, planning and strategy prior to the investment may have serious options to end up in benefits for the investor.
To achieve the desired dream of obtaining high profits in the stock markets will be as necessary a good technical preparation, as the appropriate psychological attitude, and from now banish the initial failures by logical inexperience to: “Do not make more mistakes or vices in the stock markets. “