Since I am fairly new to trading I am asking myself how does one (correctly) control emotions when trading/investing. I have often read to approach trading with a set in stone kinda rules, no emotions…
How do you guys (and girls?) deal with FOMO trades?
I feel like this topic is hotter than ever, at least in imo, since the market right now is very FOMO driven it seems.
Appreciate your thoughts, insights, comments, criticism!
I would say if you’re investing in something simply because other people are, which is the herd mentality we’re seeing right now then don’t do it.
That being said, if you do believe that everyone is right and it fits your risk tolerance then go for it.
If not, and it is purely because everyone is investing then stay away.
This woman doesn’t care about FOMO. Someone recently told me he/she was following a lot of YouTube channels because of the investing ideas and was scared he/she would miss out. That is exactly what I don’t do. You can’t be everywhere on the same time. And yes I see sometimes stocks where I think “damn I should have seen that”, but who cares. I am growing my money and that is my goal.
If the FOMO is within my trading tolerance or risk agenda, sure. I’ll throw in some few pennies.
But if the FOMO is about broken down stocks, I’ll just watch from the sideline. Can’t be getting stung twice!
To my mind, many people don’t seem to even have a proper grasp of the distinction between trading and investing. Tempting as it can be at times, I rarely ever trade.
In my experience, it’s important to have a strategy in place beforehand and, within reason, to stick to plan A at all costs. For example, I have a portfolio of about 30 companies, across sectors and geographies, that I have painstakingly identified as good long-term growth stocks.
I review the holdings once, maybe twice, a year and aside from swapping out the odd few in line with my overarching plan, I will not buy anything else nor sell any holdings in the interim. As well as investing regularly at cast-iron percentages, I set some cash aside to buy any dips too. That way, I can satisfy the itch to try to time the market while staying loosely on track.
I feel like many of the lessons around emotions/psychology are partly unavoidable and can only be truly learned by making the mistakes yourself. For that reason, especially when starting out, the trick is often to remember to mitigate against yourself.
I’m investing into the market for life and long term growing my money. I love the stability and performance of the usuals like Apple, Microsoft, Amazon etc.
So I’ve had to unfollow a few YouTube channels lately because it was daily & constant penny stocks 10x 20x!!!
And to be fair to them they were making lots of gains over a week or 2 and the subscribers were too. It was just frustrating to be not getting involved, due to the risks, so I starting unsubscribing to avoid the temptation. At the moment I don’t have a few hundred or thousand to chuck into a pump and dump, my money has to go into something careful.
I have kept a watchlist of a bunch of penny stocks; innovative tech and some biomed, to do actual research eventually to see if there is value in long term investment.
Same… My portfolio is intended for my retirement.
You have to be slightly intrigued by all of this though? If you’re made a quick grand recently is it not worth removing it from your long term and having a crack at this?
If it works you could add 10k or more to your retirement, if it doesn’t you’ve lost about 65%
Use a % of your portfolio for the hype trains and momentum’s. Diversify that % into a few and spread your risk. I created a pie 2 days ago it’s up just over 120%. Wasn’t huge money put into it possibly 5% if even of portfolio but it’s doubled in value in 48hrs whilst keeping the remaining 95% in long term plays
I bought into your pie minus GNUS. 200 dollars is all. Let’s see how it goes.
Watch the AMC and GME in it mate if you’ve just put into it as won’t fulfill those. Raise NOK and throw in NAKD
I got 200€ in those too, I can afford to lose that.
But I will increase my separate Nokia stack massively
The combination of 5G and reddit raid is just too good to pass
Is NAKD also reddit target?
Done.
Likewise. Why not buy a 200 euro lottery ticket.
The pie starting today will be that lottery ticket!! Had to update it and miss out on the main one that was in it but, let’s see how it does
Better odds, way better
Mate I’ve just revised this pie you are following due to being a higher % in GME and AMC and not wanting to give those freebies away.
I’ve adjusted it myself. I’ll cash out tomorrow regardless of what happens. Should be interesting.
You think we can open short position on gme in cfd?
I’m definitely not doing that until next week. This thing is only going to blast into Uranus tomorrow.