Understanding Risk & Rewards is The Key to Your Investment Success

Understanding Risk & Rewards is The Key to Your Investment Success

Agoraphobia, fear of failure and defeat, is a greater hindrance to success in the stock market than is greed. But in the stock market there also seems to be a fear of success. I can't put my finger on the precise reason it exists, but it does.

All too often investors are snatching defeat out of the jaws of victory. I see it all the time and I'm sure it's happened to you, too. You sell a stock for no real good reason and then it goes on to be a gigantic winner. Or you are so intimidated by the market and los­ing money that you simply sell with the crowd over and over again and console yourself for the short period of time when that same stock is a little lower, but feign ignorance or even take it off your screen once it's roared back.

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