• Australian (ASX) Stock Market Forum

Hello and welcome to Aussie Stock Forums!

To gain full access you must register. Registration is free and takes only a few seconds to complete.

Already a member? Log in here.

What is it you're most afraid of when it comes to stock investing?

Discussion in 'Beginner's Lounge' started by dreamxite, Aug 23, 2015.

  1. dreamxite

    dreamxite

    Posts:
    12
    Likes Received:
    4
    Joined:
    Jul 13, 2015
    Hi fellow investors, just curious to find out what is it you're most afraid of when it comes to stock investing? What does it frustrate you to think about? What obstacles regularly present themselves?
     
  2. tech/a

    tech/a No Ordinary Duck

    Posts:
    19,293
    Likes Received:
    3,383
    Joined:
    Oct 14, 2004
    If your afraid of anything you shouldn't be trading
     
  3. barney

    barney

    Posts:
    3,753
    Likes Received:
    1,971
    Joined:
    Aug 17, 2006
    It frustrates me to think about those who try and take advantage of new and inexperienced traders.

    What frustrates you "dreamxite"?
     
  4. adnie

    adnie

    Posts:
    8
    Likes Received:
    0
    Joined:
    Aug 23, 2015
    I don't fear anything while trading, as before I enter any trade I have a stop loss in place so I know exactly the worst case scenario.

    Originally when I began trading, I feared losing money, but I was very lucky to learn early on the concept of taking a loss before it turned into a bigger loss. Now I can just pull the trigger on a losing trade without thinking about it and then move on to the next trade rather than holding on to it and hoping it turns around.
     
  5. dreamxite

    dreamxite

    Posts:
    12
    Likes Received:
    4
    Joined:
    Jul 13, 2015
    There are two kinds of forecasters: those who don't know, and those who don't know they don't know. - Be careful when you are not afraid of anything.

    In regards to stop loss, you need to understand there is a limitation to it. It is a powerful tool for traders to minimise loss, aka reduce risk. In normal market conditions, stop loss works because there are ample of liquidity provided by willing buyers to take your trade. However when market panics and crashes, when everyone is heading to the exit door, that's when there are high volume but zero liquidity, there are no willing buyers. Stop loss will fail to work at the time you needed most.
     
  6. adnie

    adnie

    Posts:
    8
    Likes Received:
    0
    Joined:
    Aug 23, 2015
    That's good advice, thanks Dreamxite. Can imagine there will be a bit of that going on now in the current market conditions too.
     
  7. tech/a

    tech/a No Ordinary Duck

    Posts:
    19,293
    Likes Received:
    3,383
    Joined:
    Oct 14, 2004
    On the flip side of that
    Fear can be crippling.
    Black swan events can and do occur

    In all investment.
    Most people fail due to under capitalization and
    Or In action.

    Vast difference between fear and caution.
     
  8. qldfrog

    qldfrog

    Posts:
    5,090
    Likes Received:
    3,929
    Joined:
    Jun 8, 2008
    I first and for good reason fear myself: the unlogical decision, against your own good judgment you can make when panic striken or too enthralled by an action; all these things you can do which you would not after a 5 min break or a cup of tea
    i also fear the manipulation you can be subject to when trading some small stocks; in effect legal or not so legal scam/fraud but you can control that;
    and lastly the fear of black swan events where your stop loss are completely useless and you end up blowing your year profits on a couple of stocks which zip past your stop losses.not pleasant...
    but but I had some stop losses in place..:mad:
    so you learn
     
  9. >Apocalypto<

    >Apocalypto< 20.03.2012

    Posts:
    2,233
    Likes Received:
    0
    Joined:
    Feb 2, 2007
    for me, once i have a good run i start to get over protective of my accounts higher balance/ground.

    this leads me to start worrying about losing money. i start taking trades and exciting to fast or running small stops... this leads me to jump back in > more losses... this can lead to my mental house of cards coming down. like bull and bear markets... it's amazing how fast you lose your money compared to the grind making it.
     
  10. bigmacca

    bigmacca

    Posts:
    2
    Likes Received:
    0
    Joined:
    Sep 14, 2015
    Well I'm afraid of sucking it at! I would never hear the end of it from the wife!
     
Loading...

Share This Page