Posts Tagged ‘investing emotions’
Lose Money in Stocks: Go Panic Buying!
Lose Money in Stocks: Go Panic Buying!
by: Kendrick Chua, the Wealth Warrior
In any investments, we abide by the principle, “Buy Low, Sell High”. That is how we make money. Some would rather rephrase this with, “Buy High, Sell Higher”. In both cases, as long as your sale price is higher than your purchase price, you’d do just fine. This is applicable to all investments but much emphasized in stocks because of its liquidity.
In the last leg of the Bull Run in 2007, many people found themselves jumping into unchartered waters just because every one was shouting, “The water’s fine!” It was fine then, until suddenly a rip tide caught them swimming without their trunks. Suddenly, investors found themselves losing money more than they intended.
What happened then was people feared of getting left behind after hearing stories of others earning big (and I mean big) in the stock market. They kept on bidding higher and higher and others just sold them what they wanted. They were in short, panic buying!
Tags: investing emotions, stocks
