Have you ever tried riding in Vikings, Star Friskbee, or Surf Dance in Star City? Well, that’s the overall summary of how you will feel while investing and trading in the stock market.
The enjoyment, the fear, the euphoria, or the panic all of these emotions make you go crazy or insane after you experienced the volatility of the market. As you can see, the stock market is filled with emotions of the trader and investors. You will see that there is a sudden spike of volume of demand or sudden drop of price in the market due to a pile of sellers.
If you are weak or fragile and not yet ready to take volatility in the market, I guess you should go invest in other investment instruments. Because the stock market is not a get rich scheme due its volatility.
The stock market talks about managing your emotions and how you will approach the market on your own bias. If you are afraid to see losses or red stuff in your portfolio, then why not go for conservative investment instruments such as: time deposit or money market.
I guess, there you won’t have any heart attack since there is a low volatility of the market. Hence, if you’re ready to take the parachute and jump from the airplane or ride the massive rollercoaster volatility of the market, why not try to trade or invest in the stock market. Just educate yourself more about the foundation of how the market works, analysis on how to understand the market well on your accord, and managing your emotions through up and down volatility of the market.
How will I approach the market?
First, before you trade or invest in the stock market you must first educate yourself on how this system works. Second, if you already know the basic concept of the stock market then you should go examine yourself if you are a trader or investor.
If you are a trader, meaning, you are willing to participate on the market fluctuation through day to day basis or even hourly basis depending on your strategy that will suit you. Having said that if you’re an investor, meaning you will invest your capital through the long-term horizon of the market and avoiding the short-term fluctuations of the market.
Third, if you already distinguish what type of trader or investor you are then create your own strategy and system on how you will approach the stock market. For traders, technical analysis will be your guide in analyzing the market. While for investors, fundamental analysis will be the guide in analyzing the market for the long-term horizon.
Last, ready yourself for the volatility of the market because the stock market is not just a type of investment for the sake of investing. It is a type of investment where there are strong and brave investors and traders that are investing and trading in the market.
Now that you know the core concept on how the market works, I am telling you once again. Are you really ready to take this road to your financial freedom? As quoted by Robert Kiyosaki “Financial Freedom is available to those who learn about it and work for it.” Get yourself up and start working!