Hello people from all world
I'm a psychologist and I really like to study people's behavior in the context of values.Today I write to you to talk about something I see a lot in the stock market that always gets in the way of investors. It is self-confidence or high self-esteem.
So, it is very important for our life that we develop our self-confidence from an early age. By developing it, we will go through life's paths better, we will develop better as a person, we will have more social skills and we will deal better with life's tasks, such as the job market, for example.
For this, we need our parents, as children, to value our deeds and give due value to them, always encouraging us to grow. As teenagers and adults, every action we do that works has a tendency to increase our self-confidence. If we are in doubt about achieving something, and when we try we do, our self-confidence will tend to increase.
The problem is when we take this to the stock market and cryptocurrencies
The person, for example, has a trader mentality, that is, he buys and sells stocks or cryptocurrencies. So, she starts trading, buys a stock for an amount x and after a while sells that stock with a profit of 30%, for example. Or, buy bitcoin for an amount x and sell it at a 20% profit. These sure sales will make the person's self-confidence grow. Hence, she will want to take more risks with increasing values, and may even sell some valuable asset, such as an apartment, to play on the stock exchange, for example, or, worse than that, take a loan from the bank to buy cryptocurrencies.
Suddenly, the market crashes, operations go wrong, she becomes desperate, as she has never seen a falling market and sells her stocks or cryptocurrencies at a loss, causing her to lose a lot of money.
So, be very careful with high self-confidence. Always operate with values that will not be missed if you lose and focus on the long term. It's the best way out, in my opinion.
I hope you enjoyed. I wish you all a good afternoon!!
source of picture: https://www6.royalbank.com/en/di/hubs/ideas-and-motivation/article/why-overconfidence-can-hurt-investors/jvviy2ea