Thread by @krishstocks

How To Overcome Your Fear Of #Investing In The #StockMarket

Most of the people are market-averse when it comes to investing their hard-earned money in it. The primary and most significant reason for this is the fear of loss of money.

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More often than not, this fear stems from the lack of knowledge surrounding #Markets. In this thread, we try to overcome this fear of investing in #StockMarket by following some easy steps

Here are some of the things you can do to get rid of your fear of investing in stocks

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1. Gain Knowledge of Stock Markets:

Start by educating yourself with the basic concepts related to stock markets and how do they work. You can reduce your investing risk significantly by understanding the basic #fundamentals, which are not as tough as you think.

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When you do that, you automatically become more sound and comfortable to make your decisions. You gain an understanding about the buys and sells and learn as you read more.

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2. Set Goals:

You must set goals in terms of where you see yourself financially after 5, or say 10 years. The times that we live in today, we cannot ignore the effect of inflation on just about everything.

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#Investing in the stock market works as an added bonus over and above your normal income and assists you in your future needs. This should serve as the main motivation to overpower your fear and channel it to a useful outcome.

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3. Start with Modest Investments:

It is acceptable to start small. When you start small,
you are not too worried about the risk of losing all your money while you are still trying to grasp everything.
As you go on, you can increase your investment depending on your comfort

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for example, you can begin by purchasing a single #stock of a company you are interested in and gradually increase it later on as you get more familiarised with the functioning of the stock market.

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4. Develop an Investment Strategy:

Even if you have no prior experience in investing, it is still very imperative and helpful to have an investment strategy. When you have a well chalked out plan, it becomes easier to manage your investments.

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You can develop an investment strategy by reading about various trading strategies online and customising one for yourself by applying your own skills.

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5. Talk to a Finance Professional:

Apart from assessing your personal finances and developing a strategy, if you still feel lost, take the help from finance professional. these professionals help you with your decisions, they remove your worries regarding investment risks

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6. Don’t Lose Hope:

Even with all the planning, there is still a chance that things might not go as planned. Take that as a lesson, learn from it, and apply that knowledge in your future transactions. It is even better if you can prepare yourself for such smaller setbacks

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7. Determine the Opportunity Cost of Investing:

A lot of people keep procrastinating their decision to invest in stock markets to a later day which never comes. This can be avoided by acknowledging the opportunity cost of investing.

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Investments tend to increase in value over time and you cannot deny the power of compounding. So each day counts, the earlier you invest, the more money you get later on.

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8. Simple Approach: Every penny counts.

The sooner you begin to invest your money in stock markets, the sooner you reach your financial goal set for your future or savings for your retirement. You can diversify your investments depending on the risk you are willing to take

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Not every stock market investment bears a high risk. There are many options that give you regular returns at a minimal risk. You can plan your approach accordingly.

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9. Find Your Favourite Sector:

As you read about stock markets and various listed companies you could invest in, find your favourite sector you might want to specialize in.

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If you decide that rental properties excite you, then try to gain as much knowledge as you can about how the real estate companies fit into the stock market. You can learn about some of the top companies, how their returns have been in the past, etc.

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10. Stock Market Volatility:

Don’t let the stock market volatility affect you. Keep a tab on the news channels and stock market trends, but not to a point where they start making your decisions for you out of sheer panic.

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Be calm and tune out the noise that might make you take drastic steps which prove harmful in the long run.

#staystrong #stayinvested
#StockMarket