There are many different secrets that one can use to help them make better investment choices and therefore get a much better return the average. Perhaps none is more important than the secret of developing a mindset that allows you to see opportunities where others do not. This of course is when you will see the greatest returns.
Most people wait until an investment has already shown itself to be in an uptrend for a while before they are willing to put there money in. The problem with that is that the trend may soon be broken when it has already come that far. Most people lose money because they do the exact opposite of what you are supposed to do.
What are you supposed to do?
Everyone has heard the cliche of buy low and sell high. Yet, probably 90 percent of people do the exact opposite. Why is this?
For one, they may lack the confidence in themselves to spot an opportunity until they receive approval by watching other people get on board. This however is usually when an investment makes its biggest upward movement. I'll give you an example:
Stock A drops from 1.80 to 1.25 in one day. This is a great opportunity as it is still a good company, but there is widespread market panic. By the end of the day it rebounds to close at 1.50. Now, the best opportunity would have been to have gotten in around 1.25. Most people won't though.
Most people will wait until the next day when the opening price has jumped back to 1.80 and they have already missed out on a 40 percent plus 24 hour return.
You have to control your emotions and spot opportunities. The difference in your returns can be astounding!
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