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Description of  Investments - Name of the Trade: Find Your Way in the Capital Markets

The stock and capital markets are intriguing and attractive for many people. Engaging in them bears the dreams of earning significant profits with the ease of simply watching numbers grow. The motto is allegedly simple: buy low, sell high and the difference is entirely yours. It is known that most people view themselves as having a higher-than-average IQ and self-confidence. We all believe that in the moment of truth, we would be able to make wise and correct decisions, and profitably manage our money in the market. However, in practice, our decisions are easily affected by our thoughts and are biased by them. Emotions like fear, hope or greed have significant influence on the process of decision-making. These emotions may harm us by making us execute wrong decisions that bear losses, or at least lower our gains. In order to cope with the emotional bias, one must build a clear and detailed trading plan. This is the only method to control our decisions and follow them. Read more