Home > The Stock Market > PLAYING TODAY’S STOCK MARKET TIP #6: GAIN FIRST-HAND EMOTIONAL EXPERIENCE!

PLAYING TODAY’S STOCK MARKET TIP #6: GAIN FIRST-HAND EMOTIONAL EXPERIENCE!

October 24th, 2011

GAIN FIRST-HAND EMOTIONAL EXPERIENCE: Playing with small amounts of your capital allows you to gain valuable experience on a gut level. This is the only way to appreciate the actual emotions of fear, greed, worry, doubt, overconfidence, and indecision that get in the way of playing the stock market correctly.

The pressure of trading the stock market has an uncanny way of exposing one’s emotional weaknesses and true individual temperament. And, in most cases, an investor’s degree of success or failure in trading the stock market over time is predicated more on emotional control than it is on factual knowledge. It’s the quality of your investment decisions that will determine your success, regardless of the pressure that you feel individually. Therefore, it’s wise to prepare for inevitable emotional pressure by getting your feet wet with actual trading experience.

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“Wall Street is motivated primarily by emotions – fear and greed.”

Wall Street Adage

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