Timing the market is probably the most difficult thing to do – no matter how much you know about investing it always seems to work out exactly the way you didn’t want it to happen.
Here is a graph about the typical investor behaviour that always ends up losing us money. Before buying or selling stocks – take a look at this graph whether or not you are going to make one of the worst money mistakes of your life!
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I spent a lot of time trading stocks. Had all these rules for myself setup before the buy. What I expect the stock to do, when to sell at profit, when to sell at loss.
But no matter how detailed my rules where – I always broke them. Before the buy and during ownership are two completly different psychological states of mind.
Of course, like 90% of traders I lost.
I have never tried day trading – the closest I have come was when I took part of an IPO that I was 100% convinced will go up on the first day of trading.
I did something stupid that I never recommend anyone do – I took all my money and gambled on this 1 hunch.
I probably got lucky and won big time – made about 50% of profit in less than 2 hours (was well worth the English class I had to skip to keep an eye on the stock movement).
Everything ended happily but actually I was scared to discover that controlling my feelings when so much money was at stake was more difficult than anything else I had done in my life. Controlling the urge to make more money and the fear of losing everything is very tricky and needs a lot of practice when you can make or lose thousands just by selling your stock 1 minute later.
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