Avoid These 3 Biases While Investing in Stock Market

Of the wealth creating assets, Stock Market has its own significance! Some say that it is a “Wealth Creator” in the long term while some say it is “Gambling”

What’s we have to understand is it’s our behavior whether to earn profits or to make loss in the stock market! Confused? Read the rest story.

Though you accept it or not, Stock Markets rewards investors with minimum 15-18 % returns. When we closely observe the past 3 decades history(ignoring 2020-21 Market Returns; as it is a once in a lifetime opportunity)Stock Markets rewards with 15-18% and even more for some stocks.

But how many investors grab the offer! Hardly 1-2% of the investors created that wealth in this 3 decades! Do you know the reason why? Because of this 3 Investing Biases, investors are not gaining such returns, They are-

  • Markets have given extra-ordinary returns, shall i book profits?(In anticipation of market crash)
  • Markets are in correction mode! shall i exit my investments?(Fear of loosing capital)
  • My investments hasn’t earned much capital appreciation! I am in minor profits, shall i come out of that stock?(Lack of Patience)

Stock Market is an “Emotional Game”. If you avoid the above 3 biases, you would make profits. Even though Fear and Greed are the flipslides of the stock investing, controlling emotions is critical to add multi-bagger profits

If we control our emotions and be “Goal Oriented” you would definitely success in the stock market. What you have to do is being goal-oriented and never loose patience

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