3 reasons why people are scared to trade in stock market

3 reasons why people are scared to trade in stock market.


We see many people talk about stock market, but very few of them trade in stock market as majority of them are scared by the term ’Stock market’. There are various reasons that stop people from trading in stock market, but the top three reasons are related to your emotional quotient. Here are the top reasons why people are scared to trade in stock market.

  1. Fear of losing capital.

Like any business, ‘fear of losing’ plays a crucial role in the career of stock traders. Trading in stock market involves quick decision making. Hence you need to have a better emotional control to handle them effectively. The downside is always there in any form of activity, but the collective result depends on how you approach it.

  1. Lack of understanding.

Traders have no restriction on knowledge required to trade in stock market, but the success in stock trading is directly proportional to the knowledge and understanding about the basics of stock market, analysis and the instruments such as futures and options. The confidence to trade is derived by gaining the basic concepts. Stock market training should be your first step to get started in stock trading.

  1. Considering stock trading as gambling.

Stock trading requires almost no physical work, but it may drill you mentally. It is not about betting on number or playing with uncertainties. Most of the traders approach trading from gambling perspective as they lack knowledge and discipline. Stock trading is not about becoming rich over night, but it is about the art of making money with deep understanding about the companies or markets. The rational behavior is termed as discipline in the field of technical analysis.

As an outsider of the stock market you will have many misconceptions and myths regarding stock trading and technical analysis. We at EQSIS help you to make money in stock trading in an ethical manner and overcome all the emotional fear and train you professionally to become a successful stock trader.

We appreciate your views. Kindly add points relevant to the current section.

Article Info

Published Date: January 22, 2017
Author: Valarmurugan

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