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When it comes to trading shares on the stock market,
there exist an element of risk involved where your buy will go down, up
or stay sideways. This element of risk often means the loss or profits
of money from your investments, and thus a lower or higher value of your
portfolio. This element of risk often scares some people away from the
market and from buying shares. It is human nature to want to avoid all
kind of risk and loss. To those investors who have no idea about the market,
fear of the unknown can start to build, especially after reading some horror
stories about debt and people who were once previously rich losing all
their money and investments from a series of bad investment moves.
Don't Be Afraid Although it is good for one to be cautious about the stock market, if you are interested, don't let the unknown elements of buying, selling and trading stocks, or the possible losses that you may incur. The simplest way to make this unknown world to you is to learn about this world, through reading different investment books, online sources, journals, or doing a course in the market to give you the basics to get started. Once you've started and found yourself settled in the market, you will begin to gain investment experience and learn that way. As I said previously, people like us are designed to avoid loss and to fear the unknown. There are two good ways that a new investor can use in order to start trading on the stock market without the initial fear of loss inside them and also that may help you to lessen your losses, should your shares go down. Begin Slowly The simplest way to move into the market as a beginner is to start slowly, buying up small shares to begin with. Buying a small amount of shares initially in a company may not pay you back big returns, but the risk of loss is lessened. The stock market is a long term commitment for us to understand that it may take you a few years to accumulate wealth. Many investor who has made fortunes in this market didn't do so by sheer luck or spending big on the first stock they saw. They had learn to understood that the losses come with the gains and it is not worth gambling too much unless you have both the knowledge and the experience to deal with large sums of money and shares. Creating Solid Portfolio A solid share trading plan and portfolio is an extremely important backbone to your market ventures. Your initial few stocks bought should be solid and relatively risk free. Choosing these safer options and also blue chip stocks, will form the core of your share portfolio and will mean that you always have something there to support you, should future choices and risks go astray. Those who have been investing in the market for years, even decades, understand the volatile nature of the market and share trading. They are fully aware that some days they will post losses. The ability for us to handle the losses and the falls of the stock market is important. If your shares fall now, you need to understand this is what you have risked. Understanding and knowing there is always a risk is a key to stock trading successfully.
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