I'm generally more conservative, unless I see an emotional play. Emotional play u ask? Well this means I see an opportunity in the market usually due to people overacting irrationally to perceived negative news.
Last year, one great example was NEP. The company announced that if interest rates remained high they might not be able to continue increasing their dividends regularly in 2024. The market reacted badly and the stock price dropped big time. Of course I brought... The price has recovered and I'm now sitting on a very nice average price, and an even better dividend return.
Is this impulsive? No. Do I have balls of steel? Yes probably, because I am being contrarian and going against the market. But as an emotional investor I'm using different rules. I see an inconsistency between reality and emotional perceptions of reality. And that's how I make the most money.
I would love to hear your comments/questions on this post.
Comments