Imitation

Most of the time we imitate others without our knowledge. This imitation can be useful at certain times but not always. When coming to stock market, imitation is most commonly followed practice by most of the traders and investors. People imitate 3 kinds of people in stock market

• The Friend or Relation
• The Majority
• The Powerful and Successful

Most of the time, people take trades or invest in stock market without having prior knowledge or without taking experts / professionals help. When coming to financial markets, people do not follow the step by step or patience procedure. They invest / deploy all the capital in one go. One of the main reason is looking at their friends and close relations who made quick money

Imitating the friend or relation is the easiest option and the most tempting option one does in investing and trading in stock market. When a friend or relation makes money first time or second time, people think it is very easy and invest all the hard earned money in one go. When the market reverses or goes against them, they book losses without knowing how to react or adjust. So, following or imitating our close friends and relations are quiet common in trading / investing stock markets. One should always gain experience before investing or take experts advice

People believes the news channel or social media. Most people look at the majority of people concern and they invest or trade according to them. People also believe, majority of people will not go wrong. But in stock market, the market attacks the majority of crowd and the one without patience and consistency goes out of the market soon. We should also understand that majority of people lose money in stock market. This means the stock market does not go where the majority of people travel. It travels with the people who have consistent and patience

People also believe that the most successful people will never do any mistake and their positions taken in stock market will always be right and give profits. One should understand that the stock market will treat everyone the same way. What makes them most successful is the way they handle things and the way they do their adjustments to markets action. To build that quality, one should learn continuously and progress consistently. Just by following or imitating the successful people, we can never be successful

Successful people will have a great background filled with failures and they know how to react for situations with their positive habits. It is always advisable to read more books and gain more knowledge before investing or trading. Even after gaining subsequent knowledge, it is always advisable to progress slowly and steadily

Have a Great Day

B G Nareshkumar