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RE: People Started Leaving Stock Market

avatar of @piensocrates
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@piensocrates
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I agree with you, many people entered the markets in moments of euphoria, when everything seemed to be going up, believing that the trend would never reverse. For most people it is difficult to get used to the idea that everything that goes up can also go down, because the excess of optimism and greed in the markets blinds them; and also, because they are unaware or refuse to accept that bull and bear races are two normal market cycles that alternate continuously.

That excessive confidence in the belief that the trend could not be reversed is, as you said, what led many people not to put stop loss on their positions; but they also made the mistake of not taking profit when they still could. The frustration generated by losses is causing many people to abandon the markets, but as you well say, that is not the solution, because they are closed to the possibility of recovering what they lost in the future. At least that's how I see it.

For the rest, well, I think it's more profitable to be an investor than a trader, and that in all asset classes, but especially when it comes to shares in the stock market, because investing implies waiting in the long term, and because shares of companies that really have potential will increase in value over time, even if they are currently going through a rough patch.

Very good publication. Thanks for sharing. Greetings.

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