Thursday, 13 May 2010

Effective methods for increasing your self-reliance (Part 3 of 5)


A progressive loss of sensitivity to danger is the basis of learning to ride a bicycle. At the beginning, you move slowly and hesitatingly. With practice, your body begins to take control by realizing that the situation is much less dangerous than it feels. Desensitization through successive steps is the ideal method to increase self-confidence in situations that allow progressive exposure.

[2] Risk reduction: Although History shows the many advantages of stock market investments, millions of people are terrorized of the idea of placing their savings at risk. Purchasing shares of a corporation is viewed as a disproportionate exposure to chance.

Acquiring knowledge about economics can help you assess the benefits of investing in the stock market. However, it will seldom push to you take the decisive step to overcome your fears. In cases where the problem is to cross the line for the first time, risk reduction proves a more powerful tactic than accumulating theoretical knowledge.

The first-time investor should simply ignore his fears, open a brokerage account, and make a small purchase of some conservative securities. During the following weeks, he might tend to check the price of his stock ten times a day, but as time goes by, the neophyte investor will get comfortable with the level of risk and be willing to purchase shares of other corporations.

To be continued in Part 4

[Text: http://johnvespasian.blogspot.com]

[Image by jnorton under Creative Commons Attribution License. See the license terms under http://creativecommons.org/licenses/by/3.0/us]

Effective methods for increasing your self-reliance (Part 3 of 5)


A progressive loss of sensitivity to danger is the basis of learning to ride a bicycle. At the beginning, you move slowly and hesitatingly. With practice, your body begins to take control by realizing that the situation is much less dangerous than it feels. Desensitization through successive steps is the ideal method to increase self-confidence in situations that allow progressive exposure.

[2] Risk reduction: Although History shows the many advantages of stock market investments, millions of people are terrorized of the idea of placing their savings at risk. Purchasing shares of a corporation is viewed as a disproportionate exposure to chance.

Acquiring knowledge about economics can help you assess the benefits of investing in the stock market. However, it will seldom push to you take the decisive step to overcome your fears. In cases where the problem is to cross the line for the first time, risk reduction proves a more powerful tactic than accumulating theoretical knowledge.

The first-time investor should simply ignore his fears, open a brokerage account, and make a small purchase of some conservative securities. During the following weeks, he might tend to check the price of his stock ten times a day, but as time goes by, the neophyte investor will get comfortable with the level of risk and be willing to purchase shares of other corporations.

To be continued in Part 4

[Text: http://johnvespasian.blogspot.com]

[Image by jnorton under Creative Commons Attribution License. See the license terms under http://creativecommons.org/licenses/by/3.0/us]