You are creating a short-term share market investment plan. The following information will help you understand the reasons.
Herd Mentality is one of the greatest threats to short-term share market investment plans. If you invest in developing a short-term share market investment plan, your mind will be on beating the crowd. We observe what others are doing with their share markets investment plans and then follow them quickly.
Emotional Decisions are another profit-sucking error that short-term investors make in their share-market investment plan.
The Short-term mindset is driving the urgency to implement the share market investment plan. This makes it difficult to be logical and emotional when making decisions. When emotions are short-term, we tend to make poor investment decisions. For the right stock market investment decisions, it is important to remain calm and composed. But, a short-term mentality does not allow one to be calm and composed.
Ask yourself if you are able to absorb any loss in short-term investments. Can you wait until the market recovers before making another investment? If you answer no to either of these questions, your share market investment plan won’t be successful. We strongly discourage short-term investments in the stock markets. It is not necessary to mention that borrowing money is not recommended for the share market plan.
Timing the market is one of the most dangerous strategies for investing in share markets.
Remember that the only way to make money in the stock market is by timing the market. This is called gambling. You may not make money until the odds favor you. Timing is a key factor in stock market success. If the time doesn’t work in your favor, you could lose money. Your investment strategy should not be dependent on chance or probabilities if you want to become a successful investor in the share market. Timing your share market investments should be stopped. Instead, increase the time you invest in share market shares.