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Market trends : What are the great excuses for the loser in the stock market in 2023?

Great excuses for the loser in the stock market in 2023?

Only the stock market has items for sale that no one is willing to purchase.

This may seem nonsensical, but it is exactly what happens when there is a minor percentage shift in the market:

when it falls, investors panic and sell everything,

but when it rises, everyone rushes to the market and justifies their actions with a few well-known rationalizations. The adage “Buy High and Sell Low” couldn’t be more true in this case.

 

Here are the great excuses of the losers in the stock market trading:

 

First excuse: “I no longer enjoy these shares, so I’m selling.”

Investors who allow their emotions to control them frequently claim this as a justification;

they require the rush of adrenaline that comes from gambling.

This desire typically stems from the misconception that a successful investor must trade every day in order to

realize significant gains.

However, the truth is very different:

 

  • While it is true that investing wisely is less fun, it is also true that the only surefire method to profit from the stock market is to stick to your investments for a long time;
  • The majority of investors join and exit the market at the worst times, missing out on crucial chances that couldhave made all the difference.

 

The only way to gain from a top company’s success, therefore, is to hold your investments for a long time if you want to make money. Successful businesses actually have a tendency to expand their earnings over time and are rewarded with higher share prices, which results in bigger profits for shareholders.

 

Second Excuse: “I’ll reinvest when the price is lower next week”

Aspiring investors frequently have this thought while they wait for prices to drop. However, the truth is that markets are erratic, particularly in the near term, making it impossible to anticipate whether they will increase or decrease over the next several weeks.

 

This line of reasoning might be inspired by one of two circumstances:

 

  • Greed, or desire to obtain the finest deal possible at all costs,
  • Fear or a sense of panic at the prospect of short-term financial losses if the share price declines

 

Given that no one can predict if the price would actually decrease in the upcoming weeksthe risk in both situations is missing an opportunity to invest.

 

Third Excuse: “I’d rather hold off on making investments until the market is secure enough.”

This final justification is generally offered after the market has fallen, either through a brief decline in share prices or a sustained decline. The issue is that when investors claim they are anticipating a return to market stability, what they really mean is that they are anticipating a return to price increases, which will inevitably result in them having to pay more for the shares they desire.

 

This way of thinking is a result of what is known as loss aversion, which is the investor’s preference to prevent a short-term loss above making a long-term profit.

 

Eventually, it can be demonstrated that if an investor keeps their investments without continually checking the markets, they may earn at least twice as much as someone who makes investments less than once a year and then inadvertently drops them. Since it is hard to predict which days will be crucial in advance, holding onto your investments is the only way to benefit from all of these days without having to be concerned about short-term fluctuations.

 

 

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Peace and love to you.


Gracia Amor
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