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What is it you're most afraid of when it comes to stock investing? (1 Viewer)

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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?
 

tech/a

No Ordinary Duck
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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?

If your afraid of anything you shouldn't be trading
 
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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.
 
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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.
 
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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.

That's good advice, thanks Dreamxite. Can imagine there will be a bit of that going on now in the current market conditions too.
 

tech/a

No Ordinary Duck
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That's good advice, thanks Dreamxite. Can imagine there will be a bit of that going on now in the current market conditions too.

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.
 
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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
 

>Apocalypto<

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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.
 

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