Mastering One Stock – Beyond Fundamental Technical and Stock Market Psychology by M. P. Sagar

Chapter 1
How to overcome fear in one stock
ost traders and investors are only concerned with daily profits
rather than the larger goal of creating wealth. Fear is the
primary motivator for most people who lose money in the stock
market. They are terrified of losing and flee in a panic. Warren Buffet
once said that unless you can see your stock holdings fall by 50%
without panic, you should not be in the market.
Trading psychology is the study of the emotions and feelings that
develop while trading. With a solid trading plan, you can easily
control your emotions. With this idea of one stock trade, psychology
helps you stay on course with your trading strategy. Since you know
the entry and exit prices even before the market opens, fear is
eliminated when trading with just one stock. The idea is to trade
without emotion while using a sound trading plan. You start to love
trading without being anxious or fearful.
Your fear, according to Sadhguru, is entirely fictitious. Your pain
stems from something that does not exist. It is always about the
future, which has yet to occur, and if we relate this to the stock
market, most people worry about losing money and live in constant
fear.
How will you overcome fear if you do not try? How will you know if
you don’t take a risk? Fear is the most significant impediment for
people who want to try something new.
Trading and investing in one stock
At most, you will lose money. Nothing more. Fear is the most
significant barrier to creativity.
Eliminate fear by imagining the worst-case scenario and
understanding that high returns come with high risk. Most investors
seek quick money by chasing hot stocks in the market, overlooking
the importance of planning. Thinking about the worst-case scenario
means you’re preparing your mind to be resilient.

Mastering One Stock – Beyond Fundamental Technical and Stock Market Psychology by M. P. Sagar