The COVID-19 pandemic explosion has created a ripple effect on the global economy and the total loss due to the impact is anticipated to be one trillion dollars. In India, coronavirus impact is not limited to some sectors, but is visible across every shareholders and investor.
For example, India has witnessed a stoppage in the business core activities like investor’s meeting, because of self-isolation and social distancing. Due to this an adverse impact is felt across white and blue-collar sectors.
As the global economy reveals uncertainty, traders move their attention towards investing in safe havens…..most probably gold. This is the reason international gold prices touched its peak and even the trade volume were highest.
If you are considering stock trading then there are several things to consider. Undoubtedly, for long term investors, this is the right moment to grab high selling brand shares at a reasonable price.
Successful traders are the ones that adjust to changes. It is not the strength and intelligence, but the flexibility to change that separates successes [winners] from the failures [losers]. Flexibility allows the trader to deal with and manage uncertainty, which is practically challenging. In a highly competitive field like trading, there is a need for professional support to manage the challenges that lay ahead.
Can anyone trade?
A trader can get trained
Trading skills can be learned, which will include managing your emotions, handling your stress, working more disciplines, and practice patience. Psychological factors can be learned, so in theory, anyone can become a trader. The problem is how committed you are, how inspired you are, and how important are trading goals for you.
A highly motivated person can easily adopt the training, but if you are less committed, then you will need the motivation to change your behavior. Behavior change is tough! To become good a trader, adaptability is the most critical factor than intelligence.
An example of an inspired and committed trader, who changed his behavior……
From professional trade experts, you get familiar with how to reduce impulse trading. They are taught to concentrate on two aspects – how to create a trading strategy and how to comply with it. It is also necessary to develop discipline and stick to your trading plan.
Discipline is based on four factors standard, motivation, observing, and will-power. The first three factors depend on the fourth….will-power.
In this coronavirus situation, where the global economy is coming down and chances to invest in long-term blue-chip company stocks must not be ignored. If you are a new trader then make sure you get educated from professionals about the psychological aspects first because you need to be adaptable to the changes in the volatile market.
Patience and discipline are necessary for long-term investment in this COVID-19 situation for every new or experienced trader!