This is the part 2 of the article. Read the Part 1.
Incorrect response to small losses
Your balance dropped by 2-3%, and you’re already starting to tear your hair, sobbing and screaming, “Why has it happened to me”? Go back to the point about being too emotional. capital reduction is quite normal at some stage of work. This is not a reason to go panic and withdraw money.
Investing in a totally unknown activity
The simplest example is the beginning of work at the stock market or Forex PAMM accounts without any training. Neither do you have a mentor, nor are you familiar with the terminology, you only heard somewhere that others make money on it. In this situation your capital will melt like snow in a warm April sun. Master gradually, learn the theory and begin with a demo account. Find an experienced mentor who will be your reliable advisor.
Do not get fooled by the pressure from managers, salespeople, and other adherents of this or that company. They need you to invest, all the rest is of low interest to them. Always take some time “to think”, analyze and do not do anything in a hurry. But remember that everywhere should be a balance: excessive tardiness is unacceptable as well.
Investing funds that should go for the daily Needs
The market in the world and in Russia in particular, does not like such players, and is certainly not to be on your side and you will be left without any bread. Invest only the amount that does not reduce the level of your well-being.
Taking loans and Making debts
Keep in mind that the loss of your own money is one thing. But credit and borrowed funds, involving the payment of interest, are quite another. Do not take such a risk, being a beginner.
Communication with people with Different interests
Find friends among private investors, do not hesitate to communicate, ask for advice and share your opinions. In such a way you will become more experienced, better know the market, feel trends and understand the principles of forming the stock market portfolio. Such communication will allow you to learn from somebody else’s experience.