Posts

Showing posts with the label mindset

Investment vs Trading

Image
Hello, readers in todays blog we will be discussing what an investor and a trader are and the main difference between these two entities in the market. while their objective may be the same, making profit they differ in various aspects mainly the time horizon, objectives and goals, and risk-reward profile. In this blog post, we'll delve into the characteristics, strategies, and objectives of investors and traders, shedding light on their distinct roles in the market. Definition Investor An investor is an individual, institution, or entity that allocates capital with the expectation of generating a return or profit. Investors commit their funds to various financial assets, such as stocks, bonds, mutual funds, real estate, or commodities, to achieve long-term growth , income, or both aiming to build wealth steadily over time through prudent investment decisions. Investors may employ different strategies, including fundamental analysis, technical analysis, or a combination of both, t...

Trading Psychology

Image
Hello readers, today's blog is all about the thing that runs the whole world for us without it we might as well just not exist.  Our mind! our mind which is a powerful tool to make us analyze everything including the financial markets. We must have a strong psychology to survive and win in the stock market and make well-informed decisions. Let's dive in and understand what trading psychology is and how it is going to be helpful for a trader and investor to make huge returns and stay in the game for a long time. What is "Trading psychology"? Trading emotions refer to a variety of feelings and psychological states experienced by traders when making decisions in the financial markets. These emotions can range from fear and greed to excitement and regret , and they play an important role in shaping trading behavior. Emotions can arise in response to market volatility, uncertainty, or the potential for profit or loss. They can influence traders' perceptions, judgme...