StockWerld

 

One of the worst or saddest things that can happen in your life as a stock trader is to experience a significant loss in your stock market investments. It can be frustrating to realize that all your efforts have gone to waste because you still ended up losing some bucks. According to a psychologist, the feeling of dismay and disappointment is only typical for someone who has experienced such an unfortunate event. As such, it is okay to give yourself some time to mourn about what happened. However, you must not succumb to frustrations for a long time. The best way to handle or deal with the situation is to stand up once again and continue the fight.

 

 

In this article, we are going to share some of the things that you need to do if you want to become better at handling stock market losses. Below are the things to remember:

 

Let It Sink In

 

It can be challenging on your part to accept what has recently happened in your investments. For sure, it will take you a lot of time to realize that all your money has been watered because of an error you made in the past or due to some circumstances that are beyond your control. Hence, it is suggested to let the said occurrence properly sink in before you do anything. If you are still lost about what happened, then do not force yourself to feel okay right away. Sometimes, you need some time alone to comprehend what took place entirely.

 

Know Your Mistakes

 

Now that you have already accepted the fact that you have stock market losses, the next step is to determine where you committed errors or mistakes in judgment. Did you place your money in a losing corporation? Did you sell your stocks early? Did you engage in insider trading or fraudulent activities? The answers to these common questions will help you to see where you went wrong so that you can be aware of what to avoid in the future. Be honest with yourself about your mistakes because it is the only way to forgive yourself for what happened. “Self-compassion is being gentle with yourself, not beating yourself up over your past decisions, and accepting that you are human and make mistakes.” A reminder from therapist Kimberly Hershenson, LMSW.

 

 

Talk To A Financial Advisor

 

At this point, you may want to consider discussing your problems with a financial advisor. However, before you contact one, it is crucial on your part to accept the realities that there are many things about finance that you are not aware of. In so doing, you can prepare yourself for your meeting with the advisor. It can also help in reminding yourself about humility so that you can have a more open mind in listening to the advice of a professional or expert. Make sure that you continue to let the said person guide you on what to do next after experiencing a significant loss in money. “When it comes to your money, you always have the power to make a difference, so recognize that choices exist for you to improve any financial problem.” Bahareh Talei, Psy.D. said.

 

Find A Lawyer

 

If your loss in the stock market is big enough that it already involves some legality, the best and ideal thing to do is to get in touch with a lawyer. Make sure to do it as soon as possible so that you avail of the proper remedies provided under the law. Remember that the lawyer is the best individual who can help you get out of any legal mess that you may have gotten yourself into because of stock market trading. Do not rush the process of searching a legal counsel to represent you in all negotiations or even civil cases, depending on what happens after experiencing a financial loss.

 

 

Get Back Up Again

 

As already emphasized above, you have nowhere to go but up when it comes to surviving such loss. Keep in mind that just because you suffered a financial problem does not mean that it is the end of the world. You can try again and start making better decisions for all your investments. On the other hand, if you feel that you have lost your interest or passion for trading, do not hesitate to give it up. Instead, invest your time and effort into trying something new. For example, you can start your own business again, which you can use as a source of income.

 

Conclusion

 

“A stressful change in life patterns can trigger a depressive episode. Such stressful events may include a serious loss, a difficult relationship, trauma, or financial problems.”  That is according to Ben Martin, Psy.D. Experiencing a significant and serious loss in the stock market industry can be a challenging situation to handle. What is essential is to remind yourself that nothing is impossible constantly. Remember that what you are going through is only a temporary phase in your life as a stock trader. Never give up easily just because things have been difficult.

 

Any anxiety is a therapist’s concern. They have to help out people in handling their fear towards something that potentially damages their overall function in a day to day basis. In this article, the discussion is about the anxiety of investing in stocks. The topic may seem a little bit limited, but there is an assurance that a lot of people will learn something from this.

In a recent survey, only one out of ten people are investing in the stock market. A considerable percentage of the total population finds investing intimidating and scary. There is this mentality that putting a small or large amount of money in the air will only result in an instant failure. There are too many frustrations and expectations that control both the emotional and mental state of the investors. So with this, a four easy step gets presented to smash the fear of investing into stocks. People should stop preventing their money from working for them and pay close attention to these helpful guides.

Gain Financial Literacy And Learn The Whole Process

When it comes to financial investment, people need to learn. There is a need for putting facts behind fears to be able to eliminate the adverse effects of the anxiety of investing. Financial literacy is so essential because it allows individuals to gain a great understanding of monetary stability, function, and risk. With that, they become open to resolutions and consequences. But, they should bear in mind not to feel overwhelmed with too much financial education. There are tons of things individuals need to learn, but they do not often necessarily need to use it all. A few keys are enough to help investors move along and get the money going. Investing is a cycle. Therefore there is an expectation that it will either go up or down. Once people feel comfortable in its process, there is an assurance of achieving consistent results.

Face The Fear By Trying It

One way to understand the financial risk and situation of investing is through trying it. “Although any stress can take a toll on your health, stress related to financial issues can be especially toxic.” Elizabeth Scott, MS, a wellness coach said. No one can show results not unless they experience the ups and downs of the process. By engaging in the stock market, investors can search stocks and figure out which one they could buy. Trying it means the process will start in a shallow end. Yes, there is no assurance of success and no certain expectations either. But what is good about trying to invest in the idea of not getting into the deep end. Because when investors are starting to learn to invest, they can choose small. They can keep things organized, manageable, and straightforward. And if things work out, they can choose to trust it without the fear of losing everything.

Continue To Learn From The Experience

Engaging in the stock market is a lengthy process. It does not end in an instant once people invested their hard earned money into it. Everything about it is an ongoing decision-making stage where investors learn from the things they do and don’t do. There is the involvement of emotional and mental strength, which somehow becomes the foundation of critical response. Yes, it is understandable that a lot of people hate to see their money going down. That is if it is something they worked hard on and valued so much. People can’t stand financial failure. It causes them to have sleepless nights, anxiety, and even depression. But picture anxiety as what Melissa Berschauer LMFT sees it for, “Anxiety is unavoidable and designed for our survival and protection.” So for those people who can’t seem to grab on with the negative results of the stock market, maybe it would be best to appreciate the effort. They can still try mutual funds and bonds. Though it may give a meager return, at least it will be enough to keep up with the inflation of the stock market.

Create An Evaluation

So after using what people learned from investing, it is now time for the evaluation. Investors should check how they feel about losing or gaining money. As long as they understand how they think about their money going up and down, they can come up to a plan. There is the setting aside of an amount they want to keep for a long time, putting some to short-term return investment, and deciding how much money they want to save as cash.

“Never believe that a financial challenge is a sign of personal failure or weakness. Whatever your situation, remind yourself that it’s nothing that millions of other people haven’t struggled with.” Bahareh Talei, Psy.D. said. There are instances that the stock market gives a negative return about one in four years. Its process does not support monetary consistencies too. But its cycle, when things go your way, will provide you with tons of benefits in the long run.

You presumably know someone in your family or a friend who dwells in the stock market. And perhaps they have a more complicated point of view about the thing. That’s because there is tons of news around it that doesn’t entirely give others an interest. There are those people too that think that it is a place where money gets subjected to losing because it represents a very daunting environment. However, a lot of individuals are still into it. Some of them are still fond of investing in what seems like “nothing.”

The first thing that comes to your mind when talking about investment is the complicated world of the stock market. It is easy to get disconcerted with so many numbers and charts. It complicates the situation when there’s a bombardment of the information you know nothing about. So before you have trouble understanding it, let’s break it down so we can make a sense out of it.

What Is There In The Stock Market World?

The stock market in all countries has its indices. With all of these, it creates a globally networked marketplace. There are vast sums of money that moves in it back and forth. It contains over billions of money traded more than the value of all the goods and services of the whole global economy. The weird part of the stock market is about the winning and losing of money. There is not much physical that is happening in it, and it is significantly similar to any market. Hence, it is anything where goods are being bought and sold.

In the stock market, the goods are called securities. It is a fancy name for financial assets or things that people can make money with. When people are buying stocks, they are buying a small percentage of what they believe is the form of shares in as assets. It stands as a share in the company. The value of shares from a company’s asset is essential. Let’s say you already built a business and you need more money to expand it. That’s where you break down your company and sell parts of it to investors. Note that you have to keep the majority of the shares so you can stay in charge. With that process, the stock market comes in.

How Does Stock Market Works?

The shares from investors allow the company to raise money to expand and invest in the business. But trading of stocks is quite a game of chance. That’s because no individuals can tell whether a company will perform better than the others after a couple of years. If a business has a good reputation, investors will be more than willing to back it up. But a company with a poor reputation will endure the difficulty of selling its shares to investors even if it’s at a meager price.

The thing about the stock market is it instantly changes share prices within seconds. There’s a need for an immediate response so that you won’t have to miss an opportunity. You have to understand the root of the exchange. Theoretically speaking, you become a company owner when you buy a stock. Therefore, you also have the right to the profit and to how much it grows. But then you are not exempted on losing a lot when it falls.

The first things that need consideration when you buy yourself a stock is the setting of the price or amount you are willing to give out for things you don’t know entirely. Perhaps to calculate the risk you are ready to take as well as the growth you are about to achieve. But that’s not certain though. That’s because unlike an ordinary market place, people can touch and take home goods. But on the stock exchange, there are only available virtual goods to have.

The Consequences Of The Stock Market

People should have to understand that even a small rumor can cause a fast fall in a company. That will be regardless of its value to the entire industrial world. But the opposite is also possible. If people consider buying shares that are weak because of the assumption of gaining potentials in the future, the value rises. Usually, young companies benefit from this idea. That even though the younger company’s sales are falling, the generation of cash becomes possible through the placement of investments. In the best case scenario, the expenditure on a falling company becomes a reality and results in a new blooming array of business benefits. However, it can also lead to a speculative bubble that can pop up and get lost in a split second.

Again, the stock market is precisely a game of chance. So before you try and put your faith in a company, might as well study how investing to it can benefit you in the end.

The pull of the stock market to people can sometimes be so strong that they spend hours monitoring it. Some cannot pay attention to their job, primarily when the marketplace is about to close for the day. Others put all their faith of stocks, to the point that they even resign and make trading a full-time thing.

Continue reading “Mental Health 101: Comforting Words To Tell Yourself When Stocks Dip”

Riding a crowded public train every morning tends to allow you to listen in on other people’s conversations even if that’s never your intention. The oldies talk about their kids and grandkids, for instance. The young students speak of how stressed they are with academic stuff. Nevertheless, here and there, you will also hear millennials showing interest in the stock market.

One person typically asks a friend, “Have you ever considered buying stocks? I know another colleague who got his shares at a multinational company already.” In case the other individual does not have his or her stocks yet, the two may go back and forth on who should purchase stocks first.

While there’s no chance of knowing if these folks did invest in the market or not, little chats like this one show that more and more people are getting attracted to stock trading. It is not an old man’s hobby anymore. Even boys and girls who have not been in the workforce for long start to see how valuable it is to buy stocks. The question that others usually throw, nonetheless, is, “What makes stock investment alluring to individuals of all ages?”

1. You Don’t Need To Be A Degree Holder

One of the main things that draw people towards the stock market is the inclusivity that it presents to the world. Anyone who has enough capital can obtain shares from various companies. You can be a CEO or a busboy – your position at the workplace won’t matter when you start purchasing stocks. It is not even important to have a degree in Business or Finance since you can take a crash course on stock trading online.

2. You Can Work The Market Anywhere

The stock market is also suitable for millennials or older people because it jives with the on-the-go lifestyle of such people. When you want to go to a tropical island with family or friends for a week, you can do that without worrying about leaving your stocks behind. In case there is a business trip your boss wants you to attend, you can agree to it freely. As long as you have internet on your destination, checking the stock market won’t ever be a problem.

3. You Don’t Have To Watch It 24/7

Another thing that makes stock investment attractive to many people is that only a few factors can affect its rise and fall, and none of them can get blamed to the owner of the stocks. Hence, after buying some shares, you may look at the line graphs once or twice every day before you deal with other stuff in your life. If you are quite busy, you can ask for help from a broker to manage the stocks on your behalf. However, the market can never get in the way of your career and personal life.

4. You Can Make Money Work For You

Last but not the least, doesn’t it feel amazing to see money getting transferred to your bank account regularly even if you are not doing any physical or mental work? What will be doing all the job for you is the money that you invested in stocks. You can allow your shares to mature, for instance, and gain profits from it as their value continues to increase. Alternatively, you may choose to sell the stocks once their worth goes down or when you are ready to venture into other commodities.

The stock market is an exciting world that anyone with funds can enter. You can earn money without lifting a finger. You don’t need to attend board meetings at a company but still receive profits from its sales.

Now, when will you start investing in stocks?

Many people have started dabbling in the stock market due to the prospect of earning thousands of dollars by investing in various companies. Everyone wants to be able to resign from his or her day job and stick to his or her hobbies without worrying about money. The more the line in the stock charts rise, the more they get closer to attaining financial freedom.

The issue, however, is that this market is not as predictable as the flow of water in the rivers and streams. It is fluid enough to move – that is correct – but both ends are open. That means that the value of your stocks can increase or decrease at any time, thus giving anyone concerned about their money too much stress.

If you want to eliminate the internal tension caused by the ever-changing stock market, you should try the following.

1. Do Your Research

Elizabeth Scott, MS, a wellness coach used to say, “Learning to cope with financial stress and effectively manage your financial situation can help you feel more in control of your life, reduce your stress, and build a more secure future.”  A typical decision of folks who want to play safe when trading is to hire a broker and let him or her find companies they can buy shares from. It usually is not wrong, primarily if you know the agent yourself and you believe that he or she is excellent at this job.

Despite that, plenty of things can happen once you market stocks. You cannot allow any broker to put your hard-earned money on a company that you have never heard off until he or she told you about it. For your future’s sake, you should spend time doing research on the businesses’ stock history to figure out whether you still want to invest or not.

2. Avoid Following The Trend

When you are into stock trading, you may often catch the term “hot commodity.” It practically refers to the products that are in demand at the moment. Buying stocks from industries that produce them can be profitable for you now. The question is, “For how long?”

“Stress affects every aspect of our lives, especially when it’s overwhelming. It can inhibit sleep and natural healing; cause stomach issues, headaches, and weight gain; increase pain levels; and even lead to heart disease.”  Sonja Seglin, LCPC said. So to get rid of stress, you should only think of investing in commodities that people would need forever, e.g., oil, metals, agriculture, and the likes. These are products that the whole world requires a steady supply of, so the downs you might experience while trading them may be minimal compared to others.

3. Have A Plan

Another reason why you need to research before buying and selling stocks is to make sure that you can come up with a sound investment plan. The thing is, when the value of the current stocks becomes low, you may want to trade it as soon as possible, thinking that you will incur more losses by keeping such shares. If you invest for the first time, your sights may only be on the multinational companies.

You cannot react without giving the matter much thought because you might sell something that will be profitable in the future. Likewise, buying without thinking can mean wasting the funds that you should have invested somewhere else.

4. Don’t Obsess Over The Streamers

Lastly, in case you find the movement of the stocks too much to handle, you should stay away from the device where you do live streaming. Stressing over the changes you see in the graph cannot alter the fact that the line will rise and fall even if you aren’t looking at it. So to keep your sanity, you need to stop obsessing over the stock market.

“Everyone handles positive and negative stress differently. And yes, for some, positive stress can lead to a negative response to stress, depending on the situation.” As Jessica Harris, LCPC, LPC  explains. A healthy move is only to check the situation once a day. Do not bookmark a page or download an app that allows you to view the trading scene 24/7. Seek new hobbies and attend to your businesses too. Anything that will get your mind off stocks will do you right.

Hopefully, these tips can help you eliminate stress caused by the stock market. Cheers!

 

Whenever a group of friends in their 20s or 30s comes together, it is not impossible for the topic to focus on every person’s investments. Some of them may say, “Oh, we just bought our second house. We are going to move there in a month or two.” Others speak about their new business venture and how they are practically set for life. Of course, you will only hear the friends cheering each other at this point.

Once someone talks about the investment he or she made in the stock market, that’s when you get mixed reactions. Many people may commend you for having the willpower to buy stocks and ride the trading wagon. The skeptical ones, meanwhile, may wonder about who influenced you to make such a “rash decision” and invest your hard-earned savings on something as volatile as the stock market.

Well, if another concerned friend or family member asks you again why you put your money and faith in stocks – and why they should do the same – you can give the following reasons.

1. It’s Not Necessary To Invest Everything You Have

The most incredible thing about entering the stock market is that there is no minimum or maximum limit when it comes to the amount you can invest. You perhaps carry a hundred dollars on hand, and you will be able to find a company that will accept that in exchange for a tiny share. You may have an extra couple of thousands in your bank account, and you can also use that to fund your stocks. What this idea entails that you won’t ever need to max out your savings to start trading.

2. A Drop In Value Doesn’t Mean A Total Loss

What makes people anxious about investing their money in the stock market is the news about the ups and downs that the value of stocks experience on a regular basis. They worry that when the stocks drop, all their hopes and dreams will fall as well. However, the reality that these folks may not be aware of is that it is sporadic for a company to get completely squashed. Its value may go down sometimes, but it can rise after a while, especially if it isn’t a newbie in the industry.

Considering there’s honestly no chance for redemption, you can always put those stocks on sale and invest elsewhere. Still not a total loss, right?

3. Stocks Promise Better Returns Than Bonds And Other Small Investments

According to Standard & Poor’s (S&P) 500, your 100-dollar capital has a more significant opportunity of having a bigger value in comparison with short-term investments and bonds. The profits you will get can rise by approximately 10 percent annually when you have shares, while you may only see around three- or five-percent growth from the others, respectively. This market index has been keeping records of the changes in stocks’ worth from 1926 to 2017, so you can ensure that their research is invalid.

4. Your Savings Can Increase Hassle-Free

In case you don’t want your money to sleep in the bank, but you are unsure either if you are ready to start a business or invest in a property, you are free to put some of it in stocks. Once you buy shares from a company of your choice, you merely have to keep track of the movement of the market. In case you don’t have time to understand it, you can hire a broker to help you manage the stocks. This way, your savings can still grow even if you don’t do anything.

Investing in the stock market may not be an easy decision for many, primarily when you have no background knowledge about it. Nevertheless, if you speak with the right people and spend some time to at least know the basics, you will realize that putting your money and faith in stocks is not a vague idea at all.

When someone opens your eyes to the beauty of stock trading, but then you find out that it requires a little amount of work from you to make money out of it, that’s when questions start to fly. First, you may ask, “How can that happen?” Then you wonder, “Is that possible?” And finally, you start thinking about what you can do to ensure that you won’t blow all your money to stock investing.

The real talk here is that there is no way for a single person to tell you how things should be done in this market. Our brains function differently, and there are various commodities and companies to invest on out there. However, in case you want to beat the odds more often than not, you should learn how to think like a successful stock trader.

See the ideas below as a useful guide to make it happen.

1. Consider When To Buy Or Sell Stocks

From the get-go, it matters to know when to buy or sell company shares. Although you may have enough money right now to obtain stocks for a particular commodity, you should think about whether it’s best to make a purchase at this point or wait until the end of the year.

Similarly, assuming the value of your shares seems to decrease day by day, you need to have a good sense of when to – or if you have to – sell them. Sometimes stocks take a dip, after all, but that does not entail that they cannot go back up. Other times, it may be more advisable to relinquish your hold on these shares to avoid losing all your dollars.

2. Avoid Relying On The Charts Alone

Many newbies in the stock market develop a habit of staring at the charts for hours on a daily basis. In their head, it seems better to monitor what’s going on in this field real-time instead of hearing about any news later.

The problem with getting attached to charts, however, is that you tend to become panicky when you see the line on the graph go down little by little. As mentioned earlier, a dip in the stock value does not mean a complete loss. A smarter technique than this one is to listen to the financial news and read the press releases of the companies you’ve invested in so that you have an idea of what genuinely happens out there.

3. Figure Out When To Go Against The Grain

If somebody tells you to buy stocks that are low in value since that’s when they are at the lowest price, you need to sit still and think about a couple of things. For one, why did those shares drop? Furthermore, is there a chance for their value to rise again?

You have to get an answer to these questions because stocks do not take a nosedive for no reason. If it’s because the supply is higher than the demand, its value may increase after some time. In case it occurred because of a major fiasco in the company, then your money may be better off with high-valued stocks.

4. Create A Plan B

It goes without saying as well that you should not only have a single strategy when you are in the stock market. Anything can happen overnight, you see, and it’s impossible to predict whether a change in the flow will be beneficial for you or not. To prevent a total loss, for this reason, you need to make a backup plan that you’ll be able to put in motion if ever catastrophe strikes.

Final Thoughts

Is it difficult to become a successful stock trader without an agent’s help? No. Do wealthy capitalists have a one-track mind when it comes to investing? Not at all.

What we’re aiming to show you above is that it does not take much to profit from stocks. You merely have to be watchful, analyze the hot commodities to invest on, and remain on the lookout for companies that may still be small but can blow up like Google shortly.

Good luck!

Stock trading is not that complex of a subject, to be honest. When you have a few hundred dollars lying around, you can use that to buy shares from any company of your liking. The profits you will get depends on their current value in the market. If you feel like buying more stocks or selling the ones you have, you are free to do that without needing to sign any clause or whatever.

What makes people lose their mind over stock trading, however, is their inability to predict the movement of things in this industry. Some merely rely on what charts indicate, after all. Others try to play safe by riding the tide, but the chance of it being the best decision is still 50:50.

For that reason, remember the things you should not do when stock trading.

1. Have A Realistic Objective

You need to ask yourself this question from the get-go: “Why do I want to enter the stock market?” It cannot be because a friend told you it is excellent, so you might as well try it. It cannot also be because you have nothing to use your savings for – you can buy a house or start a business with that.

The reason why you should provide a definite answer here is that that goal can help you stay sane while trading. It will undoubtedly be a rollercoaster ride; you will fall if you don’t have an anchor.

2. Avoid Sticking To One Commodity

A smart capitalist does not put his or her faith on a single commodity – keep that in mind. Even though that person has shares in an oil company, for instance, he ensures to dabble into metals, foods, and clothing as well. This way, in case he does not profit much from one commodity, there’s still hope for him to gain something from the others.

That is the kind of mentality that any trader, young or old, should have to prevent losing too much in this industry.

3. Use Your Own Money

In case you get in touch with a brokerage firm to help you manage your shares, it is not uncommon to come across agents who will offer you a financial loan. “You can buy more stocks with this money, sir or ma’am,” one may say. Furthermore, they can tell you that “You can avail a higher quantity of shares for half the original price.”

Although the proposal sounds tempting, it is most advisable to avoid taking out a loan for stock purchasing. It can only be good if things are going well in the market since the return of investments at that point is high. Considering it’s at an all-time low, you may face a complete loss because you still have to pay for the loan even when you did not receive any profit.

4. Don’t Let Emotions Dictate Your Actions

Lastly, you have to be in control of your feelings and thoughts all the time. Looking at the rise and fall of the value of your stocks can be nerve-wracking, primarily if it seems to be on a steady descent in the past days. You may even want to search for buyers of the shares and open a business instead whenever it happens. However, what will you do if the stocks go up right after selling them?

To avoid regretting anything when trading, therefore, you should not let your emotions dictate your actions.

To Sum Things Up

Investing in stocks is an excellent decision that anyone with savings can make. If a millennial starts trading early, he or she can gain extra money while working full-time. A retired individual, on the other hand, has a continuous source of income aside from the pension that he or she may receive every month.

Nevertheless, to make this venture successful, you should take note of the things that can jeopardize the flow of cash into your bank account. Good luck!