25 May 2013

Three Fears in Stock Market that Investors should avoid: Market price movement

Fear is a nature emotion of human being. We feel fear when something is unknown. In other words, unknown or uncertainty causes us feel fear. In stock market investment, there are three fears that we always experience, that are, we fear market price rises after we sold; we fear market price drops when we bought; and we fear market price stucks after we bought or sold. In short, we fear MARKET PRICE movement! 

FEAR: Market Price Up

"Oh My God! Why I Cheap Sold such a Big Fish (or Winner)!" Sounds familar? Don't worry, you are not alone. I pretty sure nobody can ALWAYS sell with the highest price. Because nobody knows who is the last buyer and what is the highest price that the last buyer want to pay.

FEAR: Market Price Down

"Oh My God! Why I Expensive Bought such a Loser!" Again, only GOD knows how many investors still want to sell out with price that is lower than what you paid. Nonetheless, if you are pretty sure that the price you paid is very attractive, why don't top up some more?

FEAR: Market Price No Move

"Oh My God! Why I Put my Money on this Sleeper!" Hmmm... I think all we need is patience and brave. The situation of the price that is no move, actually, is very normal. That is why we can buy it at that price, don't you?

Nothing Fears Like Something

Lastly, I think we should have a very healthy mindset, that is, we will not always be the last buyers or sellers. If we were the last buyers, the market price will go down immediately before no more buyer, and vice versa. If there are 1000 buyers, then the chance to be the last buyers will be around 0.1%. Since we cannot "monitor" or "control" other investors' actions, all we CAN do is simply wait and monitor the performance of the companies that we have. That's all for today. More fascinating articles and sharing will be updated from time to time in Xaivier Blog. So, you are welcome to subscribe our feed, look at our sitemap or simply visit our Homepage for latest sharing.

Written by: Xaivier Chia

P/S: The above sharing is solely based on personal insight and information that believed to be reliable. Your valuable feedback are very welcome.


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