Tag Archives: bear market

Here are the Things that the Market Does Not Care About

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Periods of either bull or bear market can happen on any occasion. But did you know that the market does not really care about labels or the things that might transpire in any given moment? In this article, you will be presented with a list of what does not the market care about.

  1. The cost basis you made about a certain investment

In reality, the market does not care about how much you have paid for a certain stock. You can pay a stock for a particular price and the market would not even care about it. What matters is that you know how to manage your stock and recover from any losses, especially if you have paid for a stock the wrong price compared to its potential and performance.

  1. The moment you begin investing or your retirement timetable

Unfortunate as it may seem, but the market is not bothered about your investing life cycle. Hence, the period you started to invest your funds in the market as well as your target retirement, or the time you need to withdraw your money. Such timetable solely depends on you and not on the market.

  1. The target amount of returns you are eyeing for

The market does not care about your target returns. If you are looking forward to hitting your financial goals, it will all rely on your investing skills and not on the market itself.

  1. The feelings you feel at the moment

This might be somewhat harsh but the market does not really care about your emotions. It has no sympathy about your feelings – whether you feel scared, nervous, excited or greedy.

What you need to consider in the market is that you do not have to take everything too personal as it can hinder you in making good decisions for your positions. Remember that money is at stake every time you make your move in the market.

  1. The strategy you employ

It does not mean that you have a more complex strategy than the others it makes you better than the others. Strategy is important but what matters the most is that the strategy you have is applicable to the market. The market does not give any sort of bonus award or points for the level of difficulty or sophistication of the strategy you are using.

  1. The quotes you believe and apply in your life

There are a number of great investors out there who can both inspire and motivate you as you are into the field of investing. But you have to remember that these quotes do not matter in the market.

Yes, it might be a good thing that you know such stuff; but the market is reliant on an investor’s performance and not with the number of quotations he or she believes in.

  1. The amount of experience you have in the market

Whether you are a newbie or an experienced investor, the market does not really care about it. Experience may help you with your decisions, but it does not guarantee 100% success rate. It also does not mean that you are a newbie, that you would be a failure in the field of investing.

Conclusion

The above-mentioned items are the things that the market does not really care about. What matters is that you continue to increase your learning about the market and apply it to your trading activity.

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Learn the Top Mistakes Investors Do

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For the fearful hearts keeping your money in cash and in the banks might be their idea of growing their wealth, but for the brave soul, investing in the stock market is their idea of wealth accumulation.

Fear would not take you anywhere. There might be unfortunate events that are uncontrollable, yet as it is always being said, increasing your knowledge and understanding about the stock market can help lessen the occurrences of unwanted incidents. Here are some of the top mistakes that investors tend to do and how you can avoid them.

 

  1. Not selling at the right moment

It is of utmost importance to know when to sell. This is the most difficult as an investor. You might be caught between selling winning investments too early and keeping losing investments with the hopes that they will soon recover. Thus, making you fear selling of stocks. To avoid such mistake, you have to establish an exit strategy and be alert if the market turns bearish.

It has been seen from history that during bear market stage even profitable companies can be severely affected. If you own a stock in a specific bearish sector, you should consider selling. No company would be safe from the growl of the bear. It is important to comply with the sale as to avoid losing money.

 

  1. Not applying objectivity

The opposite of objectivity as you know it is the quality of being subjective or being influenced by personal factors such as your feelings, tastes or opinions.

That is, being emotionally attached to your stocks might lead you to incurring losses in the end. As what experts say, only love a stock when it is making you money, and if it does not anymore generate anything for you, it is time to cut it off.

Also, it is a must to always base your decisions on reliable information rather than deciding based on emotions alone. It will produce remarkable results in the long run. Trading also using a proven methodology will prevent you from trading on emotion.

 

  1. Not taking into consideration earnings report

When you purchase a stock, you have to make it a point to be updated with the company at whatever form and cost. For publicly traded companies, they are required to announce their earnings report for four times annually. As an investor, you have to pay close attention to such events and use the following to your advantage.

Remember that it is already a bad sign when a stock fails to meet earnings expectations again and again.

 

  1. Not giving thought to high and excess fees

 

Fees are a form of spending that does not add any value to your investments. Actually, it detracts the long-term performance of your portfolio. You have to acknowledge that high fees cut your returns. Most of the time, investors tend to overlook this issue that fees can massively drag your portfolio.

 

Conclusion

Indeed, learning from the mistakes of others is one good way to avoid committing those mistakes yourself. The stock market is a complex system, you have to put in the time and effort to better prepare yourself. Always keep in mind that you have to avoid losses and take profits at whatever cost.

 

Alright! If you want to be updated with the latest news about the latest market news and updates, subscribe now! Trade12 is here to answer any question regarding online trading, commodities, stocks, technology, and economy. Sign up for an account at Trade12.com or you can even download the Trade12 app. Available for both iOS and Android devices.