Be Careful: The Key to Stock Market Survivability

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"The less you know, the more you believe."

– Bono

How ready are you for a rainy day? In terms of personal life, this can mean different things. However, from a financial point of view, that means having a way to bounce back and properly assess each investment before you head out first. We all have our bad days. Some days seem worse than others, when everything goes wrong, even if you are desperately trying to prevent it. You can exceed it, as long as you have taken the right precautions. By having a safety net in place, you will prevent a total breakdown even if everything else comes out completely through the window.

Prepare for a bad day. This does not mean avoiding all trades and holding on. It means accepting the fact that we all have a bad time every now and then, that you read something wrong and made a bad choice because of it, or that you simply missed an opportunity. You will eventually suffer a financial loss during the negotiation. The sooner you realize it; the better you will be when that happens. In addition to making sure that such a loss will not completely exhaust you financially, you should also make sure that it does not exhaust your motivation. Experience is the best teacher, especially when mastering the scholarship.

John F. Carter, author of Master the trade: proven techniques to take advantage of intraday and swing trade configurations, describes his approach to taking precautions. In his office, the author has installed a number of computers. One manages all messaging, online search and instant messaging activities. Carter knows that this specific machine is more at risk of being infected with dangerous viruses and spyware. To prevent these malicious attack tools from making their way into its trading computers, this specific machine is separated from the network.

Another computer, especially a laptop, is used as the backup machine. This is connected to a telephone modem. In the event of a power outage or breakdown of the broadband Internet connection, the laptop computer will always provide Carter with access to all accounts and quotes. Using this equipment and set up Carter has effectively erected a safe in case of almost any unexpected situation. It is very unlikely that more than one computer will have problems or that both Internet connections will fail, which reduces the risk of Carter from day to day.

Although it sounds more technological, it is a perfect example of caution and preparation. Being prepared is an extremely important quality that has a huge influence on your success. You don't have to find yourself in a desperate situation when things go wrong. Have a backup system in place and alternative options so you can overcome almost any obstacle.


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