Thursday: Thoughts Warren Buffett

“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.”

– Warren Buffett

General people are always wrong at top and bottom. So place close attention to general market emotion at all time.

Fear of Loss and Trading

When you are trading if you have a constant fear of loss then it will be very hard for you take trade. And if you do not make trades and then market go into your direction you feel the loss again because you have loss the opportunity to make profit.

 

How to overcome fear of loss?

 

Master your trading method

You should master one method at a time. So that you know when you are entering a trade you are certain of your position.

Always place stop loss before your trades

Place your stop loss before placing your trade. So that when trade goes against you, you get out of the trade automatically.

 

Ask yourself what is the real reason behind your fear?

Do you really know what make you fear? If not then find out and get over it.

 

When do start to feel fear?

At what stage of trading do you think your fear start to kick in like when you see a trade and then the market start to go in another direction. Or when price bounces at you stop level.

You need to find out the source of fear and then eliminate it. Fear is caused by lack of knowledge when you have knowledge there is nothing to fear.

Thursday: Thoughts Robert Kiyosaki

“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.”

– Robert Kiyosaki

You should always think of better invest your money even before you earn it.

Thursday: Thoughts Dave Ramsey

“Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this.”

– Dave Ramsey

No matter how much you make if do not have strict control your spending you will never become financially free.

Thursday: Thoughts Paul Samuelson

“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.”

– Paul Samuelson

You should be patient and consistent on your investing. If you do that you will make money in long run.