Stock Trading- Stock Trading Sentiments You Must Avoid

© John Efetobor. All Rights Reserved

Four kinds of sentiments you must avoid as an investor if you want to make fabulous wealth from the stock market.

1. Sentimental attachment

2. Sentimental Rumor

3. Sentimental feeling

4. Sentimental hastiness

Sentimental attachment is when you have fallen in love with a particular stock to the point that you can no longer be objective in terms of current market facts that counts against one patronizing such stocks, listen dear investor you cannot afford to fall in love with any equity as a stock trader, it is absolutely dangerous to the health of your portfolio. Please avoid it like a rat avoids a cat, Do Intelligent Stock Trading.

Sentimental rumor. Avoid at all cost, the dangerous habit of trading or buying stocks on the basis of unsubstantiated rumor, note rumors are good when they’re supported with solid fundamental facts. Sentimental rumor can be liken to the herd mentality... follow the direction that everybody is following... Don’t form the habit of trading or buying stocks because you see everyone buying a particular stock, please know the true facts behind the rush before you pitched your tent. Get Market Master Trading Course. It will transform your attitude to stock trading.

Sentimental feeling. Avoid trading or buying stocks on the basis of what you feel about a particular stocks, My wife loves Close-up toothpaste with a passion but that cannot translate to making Unilever a sure-fire buy if the company does not have a strong fundamental credentials to encourage me to do so. Your feeling only counts if it is hinged on sound trading ethics or know-how.

Sentimental hastiness
The hasty spirit makes one to act irrationally, when it comes to making quality decision. The fact that you bought a stock for 15 and it begins to make a loss does not mean that one should rush to sell. I bought both Lasaco and Cornerstone insurance for 3.15 and 4.28 respectively on the 11th of July, 2007, by September both had dipped to 2 and 3, I never panicked because I knew two things. One, that prices of stocks rises and falls according to the dictates of demand and supply. Secondly, I knew by available indices before me that the next sector that will experience a bullish session will definitely be the insurance sector on the basis of solid facts that were available to me, many investors panicked and sold, they recorded huge losses in the process, by the end of November the Federal Government had released the financial reserve of insurance companies back to them. I sold Lasaco 4.85 and cornerstone at 5.20 and both were still rallying up as at the time of writing this article in early January, 2008.

Stock trading realities supports that before you invest in any stock, you must first and above all things sit down and do a thorough analysis on all fronts before staking your money to a stock, this will aid you to be composed and confident. Your trading should be based on sound foolproof facts and not presumptions. I want you to Profit From Day Trading Penny Stocks.