Expectation- How it is helpful?
Updated: Mar 17
When we try to get deep into their trading pattern and question more about the nature of the loss we find three basic reason for the loss
Lack of expectation setting at the inception of trading/investment.
Unawareness about their risk appetite.
Irregular trading/investment pattern.
In this section we will discuss about Expectation part and how it is going to help a investor to sustain in the market in a long run. First of all we have to get away from this stereotype that share or commodities can be used as some kind of saving technique and rather take it as a business because of high volatile nature of these market.
Like every business venture it requires a capital, need detailed analysis about the stocks and have number of risk (systematic and unsystematic) involved in it. When we start a business we have some expectation from it based on our knowledge, experience of other businessman, nature of business but when it comes to our investment we are quite aloof about it.
It is imperative to understand that Stock Investment is no magic wand that our money will grow exponentially in the market, so it is required to set a well thought after realistic goal. This goal should be decided by number of factors like Age, Profession, life stage, Gender, Liabilities and other financial factors.
We need to understand this is our first step and it should be the carefully taken and concrete. This can lead us to financial stability and prosperity. In the next section we will discuss in detail about Advantages of Expectation and necessity of understanding risk.
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