How To Master Your Emotion And Make Millions Trading In Stocks

What you do with information available to you at any particular point in time go a long way to decide how much profit or loss you make as an investor. The power of sentiment is very strong in taking investment decisions. Emotion or sentiment Not reason is the principal driver of the law of demand and supply. Price crash as a result of excessive sale order in response to bad news about companies on the stock exchange creates more panic in the mind of investors. At this time, little consideration is given to fundamentals of the companies.
One of the power you must acquire to really make it to the top of the millionaire’s ladder is power over your emotion. You should be ready to say no when others are saying yes. You must be able to resist the urge to sell in ‘unfavourable’ period when others are selling. Have you ever sat down to ask yourself why people should be selling when actually they should be buying? Massive wealth is being transferred when the sale is going on. Those who sell when the market is bearish (majority does) reject the opportunity to get wealthy and by so doing transfer their wealth to the more mature and informed buyers. Change your thinking and separate yourself from opinion of majority and newspapers if you want to really make millions in your investment.
The number of units you hold in any investment you make count a lot. It is far easier for someone with 10,000 units to make it faster than the one with 1,000 of shares in a company. Likewise, it is so easy for the one who has 100,000 units of shares in a company to make millions than the one having 10,000 units. The more units you hold in a stock, the faster you move up the ladder. Small scale investors with 1,000 units of shares in companies they buy are not going to make any meaningful impact. This example will suffice; the recent result of subscription of the Fidelity bank offer shows that investors with 1,000 units number to about 143,000 while those who bought 100,000 units and above are just 332. People with 1 million shares and above are about 15 in number. Can you see what I’m driving at? You have a better chance of reaching the club of the minority controlling the majority of the shares. The only time you have to shore up your unit holding is when the market is down and majority are selling in panic. You however have to be highly disciplined emotion wise at this period because all you will be hearing is nothing but negative and frightening news.
Remember that your staying power is to master your emotion and do not be moved by market sentiments. Prevailing market sentiment is always against your chance of making millions. That is the lesson from the history of stock market all over the world.