Investment and management in the stock market may be a decision not generated by the desire to make profitable the savings that are always had in these operations. But it may be due to one's own small investor psychology. Of diverse nature and taking into account a series of conditions that they present in their relationship with the financial markets. And that sometimes lead them to be excessively repetitive in operations.
What is happening in the minds of investors to lead them to risk a good part of their assets? These questions are what we are going to clarify for you in this article, with the aim that you have a little clearer what moves you to invest the money saved, and in different scenarios. Normally it is a motivation of an economic nature, but there are also other less known ones than part of your personality and even hidden reasons that surface when you execute your purchase orders.
The idea has always been that investment in the stock market is developed to increase equity to the maximum, and the more the merrier. Of this there is no doubt in most cases. It is a healthy desire to progress in life, and what better way than having a greater purchasing power, and even not depriving yourself of anything. But not in all scenarios this circumstance occurs. It will be the moment to check what motivations you have to be an active part of the financial markets.
Economic motivations
As has been reflected at the beginning, it is the main purpose that investors have, and even in all probability that it is your specific case. But within this and motivation There are a number of differences that you will need to keep in mind in order to finally reach your profile as a retail investor. There will be so many that not all can be explained, but rather the most common among users of stock products.
The first of these may be due to a unique desire to make equity operations profitable in order to have a higher balance in the current account. As a consequence of them, movements you do in the markets can be characterized by be very impulsive. You are not worried about equity scenarios, but you want to really invest, even if the operations do not go according to the created expectations.
These investors are characterized because they are practically all year with open positions. For them there is no rest, not even during holiday periods. They are in continuous contact with the financial markets, to the point that your liquidity in your checking account is minimal, with balances not very large. They are overly dependent on this kind of investment. Trying to carry out more and more risky operations, even taking speculative values as a reference point.
Supply low wages
Another fairly common profile is of the person, who having an important savings bag, does not have sufficient income enough to lead a life with a certain purchasing power. And they try to get through the stock market what they cannot generate from their salaries as workers, either on their own account or on someone else's account. Not surprisingly, what they are looking for is a kind of bonus that complements their income to a level acceptable to them.
In these cases, the risk of their operations is really higher, reaching levels that are very dangerous for their interests as savers. They have no other wish than to arrive in a better financial position at the end of the month. And the only instrument in the management to achieve this is the stock market operations. The big drawback of this strategy is that profits are not always met, and you can even lose a lot of money when opening positions in equities, whether in national markets or outside our borders.
It is a money that you should not count on. Not surprisingly, it is not guaranteed in any way, not even that they will keep it through the many years they have been a small or medium investor. If you are part of this very special group, you will be assuming a great risk by committing a good part of the income generated through your work. And with the aggravating circumstance that at any moment the play can be very bad for you in the management carried out.
Assimilate the investment with a hobby
Another motivation that may arise is that you treat investing in the stock market as if it were a game. Invest your money as if it were a sports bet or something similar. Normally in these cases you are backed by a powerful savings bag in your checking account. And on a psychological level, it gives you a feeling of clear satisfaction, and one of those that other hobbies that you can develop in your personal life suffer.
This fact makes you very dependent on their operations, more than usual, and on various values of equities. Monetary motivation is not so palpable in these very special cases. And surely you coincide with other kinds of investments, and you may even be a regular gambler. You know what you riskbut you don't care much.
With a vocation as a saver
The person who opens positions in the financial markets also comes into play as a formula to equip himself with capital for tomorrow, even thinking about his retirement. He is represented by a more conservative investor profile. In which premium safety over performance of stock market operations. He does not risk excessively, and generally opts for very defensive securities, with little volatility in their prices.
Another strategy for this class of investors is to subscribe for shares in companies that pay out dividends every year. Thus, make up a fixed income within the variable without taking excessive risks. The annual and guaranteed profitability that these investment proposals can achieve is up to 8%. It corresponds to a profile of an elderly saved person who wishes to increase their savings, but without exposing their positions excessively. Try to keep what has been saved above all, it will be important in management.
Within the economic motivations in the management there is a last group that it will also be necessary for you to know it to know if you are also integrated. These are those stock market users who they want to get rich in no time. It is a very small number who achieve this desired goal. In addition, to achieve this, it will be mandatory that you have a very important heritage to invest. And not all have them, and less to risk the work of a lifetime.
Management: psychological motivations
Investors not only have monetary motivations to invest their savings. There are others that depend more on their personal approaches to management, and in very intimate cases. From a somewhat peculiar way to have fun, to a way of experiencing new experiences, even if it seems very strange. And in any case, it will allow you to increase wealth, or on the contrary, to leave you enough euros along the way.
It is not that you have to go to the appointment with a psychologist to verify what your real motivations are for entering the equity markets through your management, but it will not be advisable that analyze your personality to get rid of doubts about this very personal aspect. Not surprisingly, the causes of this addiction to the stock market can be many and of diverse nature, and that you can detect them through this information that we offer you.
Emulating the most successful personnel who frequently operate in the financial markets can be a first cause. You may not know it, but inside you may be a hidden desire to imitate those people you admire so much, and who are successful in the equity markets. It is not a good starting point since what you will really need is an adequate learning in the financial markets. And maybe you suffer from this important knowledge about the world of money.
Contact with the world of finance
Another cause that may be due to this interest in investing is to maintain, albeit unconsciously, a greater relationship with the finance sector, in this case represented by equities. And the best way to reaffirm your beliefs in investing your assets in the derivatives markets of the stock market. It follows that don't focus exclusively on domestic marketsInstead, you frequently go to other international markets, and even with different financial products (warrants, derivatives, exchange-traded funds, credit sales, etc.).
As you have seen, there are many causes of your love for the stock market, and that depending on them you will or will not have greater success in the movements that you plant with your financial intermediary. Therefore, it is not appropriate that you abuse these operations since you should think that after all, it is your money that you are gambling. And it is not advisable to risk it with certain frequency, and much less under the most unfavorable scenarios for your interests.
Nor will you need to invest all the available capital, far from it. It is enough for it to be a minimal part of it, so that in this way you protect your interests from the instabilities of the financial markets. Do not forget it, but you do not want to have experiences that are not recommended for you. Not in vain, safety and prudence should be the main common denominators of your actions in the complicated world of investing. And much less, if you do not have the experience and learning necessary to operate in this sector. Remember that you have other more stable and secure financial products to increase your assets, although with lower profitability in principle from their management.