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Temptation from friends: Hey bro, today I made 10000 dollars from the stock market. You may receive a similar message from your friends, colleagues or neighbors. During the bull market, such comments are common. The fact is that your friend would not message you with the same enthusiasm when they lose money, they mostly share the occasions where they earn. It is human nature to take great pleasure from sharing achievements with people you know. On the contrary, sharing failure is harmful and hard.
To summarize, a statement like I made 10000 dollars is just a single part of the story. Be wary of jumping into the stock market just because of such partial information. Do not get excited by your friends’ success story, because they may well be masking their losses. Especially do not follow advice and stories on social media as these are unlikely to be the complete store.
Temptation from your broker: Your broker will offer reduced brokerage for frequent trading or a large volume of trading. They will always be ready to offer high margin money for trading. They may try to convince you with statements such as you have 20000 dollars in your trading account. Not an issue. You can trade shares worth 50000 dollars and sell it within three days to pocket more profit. Planning for intraday, well you can trade worth 100000, many brokers offer such terms. What they do not mention is earning for them, not earning for you.
Temptation from analysts: During a bull market, any pretender can consider themselves as an equity analyst. With the advent of the internet, you will find thousands of self-claimed analysts on social media. Whenever the market goes up, you will find television, newspapers and websites flooded with stock tips. Almost every analyst will draw a rosy picture and encourage you to invest in stocks. Surprisingly, the same reverse their stance during a free falling bear market. The worst part is that during bear markets, these analysts will even mention avoiding the stock market, fearing that it may fall further. The reality is that during the near market, quality stocks are available at a cheap rate and thus it is one of the best times to invest. Moreover, if you select quality stocks then overall market movement rarely matters. Do not get carried away by any analyst.
Temptation from stock tips provider: Nowadays, it is common to get phone calls and SMS alerts from various stock tips provider. Eye catching advertisement are so popular. It is to be proved that how any stock tips provider can trap you by offering a free tail. Remain alert whenever you notice high return promises. Many trading tips provider claim 50% month return from their trading strategy. If that was truly the case, then today every billionaire would create their fortune from stock trading. Reality says somewhat different.
