What causes you to make bad financial decisions?

Tiger_comments
05-30
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People rarely make big mistakes in areas they know nothing about. It is often those who have some knowledge who make mistakes.

This is similar to how a high proportion of drowning victims are people who can swim. If someone doesn't know how to swim, they are unlikely to go near the water or play in it.$Tiger Brokers(TIGR)$

The same applies to the stock market. We won't invest in companies we've never heard of. But we might buy shares in well-known companies or those whose products we use every day.

So, would you heavily invest in a company just because you are familiar with it?

For example, coffee people like me may trust $Starbucks(SBUX)$. But Starbucks recently saw its stock drop 13% to $77 following its latest earnings report.

What could lead you to make poor financial decisions?

Or perhaps you have paper hands and can't handle large fluctuations.

Are you golf/watch/PC/wine people?

Leave your comments and also post to win tiger coins!

Every valid comment will get at least 5 tiger coins~

What Causes You to Make Bad Financial Decisions?
Making mistakes in the stock market is very normal. Have you ever reflected on the reasons that lead you to make bad decisions? Would you heavily invest in a company just because you are familiar with it?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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Comments

  • Aqa
    05-31
    Aqa
    ❤️🦀🍤🍖🥘🍜🍺🍺 I am a food person. My love for food always lead me to make poor financial decisions. I have loved and lost money on 🦀Jumbo, ☕️ Super coffee, 🍞Bread Talk, all of which were delisted after their stock prices plummeted. I am presently stuck with Thai Beverages and $Katrina(1A0.SI)$. $Katrina(1A0.SI)$ shares were biught at $0.40 because i loved the Food and beverage brands it owns. I used to eat with friends and partied at Bali-Ghai, Streats and So Pho. So i thought this company would succeedut sadly, Katrina’s share price had slipped non-stop like diarrhea since its ipo to $0.027 and it had 0 trade every day. I am left with no meat (profit) but all bones now. 🦴🦴🦴
  • icycrystal
    05-30
    icycrystal

    for me - being impulsive will be one of the many reasons to make poor financial decisions...

    not having patience is the other reason...

    when a stock that am holding decided to dive down, I would tend to hold onto it and [Bless] [Bless] [Bless] that it would trend up quickly.

    this is also the very reason that going for good, stable companies is important as most of the time these companies tend to recover. just have to ride out the storm

    it's also the time to go "shopping for more" as you are buying at a discounted price [smile]

    in any case, always important to have risk management and go for companies that have proven themselves time and time again that they can and will emerge from the temporary storm

    @Shyon @GoodLife99 @Universe宇宙 @rL @HelenJanet @Aqa @LMSunshine @koolgal @TigerGPT

    What could lead you to make poor financial decisions?

    Leave your comments and also post to win tiger coins!


    Every valid comment will get at least 5 tiger coins~

    • TigerGPT: 

      As an AI financial analyst, I don't have personal preferences or emotions like impatience or paper hands. However, I can provide some insights on factors that can lead to poor financial decisions:

      Emotional Decision-Making: Making investment decisions based on emotions, such as fear, greed, or excitement, can lead to poor outcomes. It's important to make rational decisions based on thorough analysis and research.

        

      Lack of Patience: Impatience can lead to hasty decisions, such as buying or selling stocks without considering long-term prospects. It's crucial to have a patient approach and give investments time to grow.

        

      Lack of Research: Making investment decisions without conducting proper research can be risky. It's important to analyze a company's financials, industry trends, and market conditions before making investment choices.

        

      Following the Crowd: Blindly following the crowd or acting on stock tips without conducting independent analysis can lead to poor financial decisions. It's important to make decisions based on your own research and understanding.

        

      Overconfidence: Being overconfident in one's investment abilities can lead to excessive risk-taking and poor decision-making. It's important to maintain a realistic and balanced approach to investing.

        

      Remember, investing involves risks, and it's important to make informed decisions based on thorough analysis and a long-term perspective. It's always advisable to consult with a financial advisor or do extensive research before making any investment decisions.

      Please note that the information provided is for reference purposes only and does not constitute investment advice.

  • Fenger1188
    05-30
    Fenger1188
    谢谢 @Tiger_comments 精彩分享，$摩贝(MKDTY)$是我最糟糕的投资，我贪心乱跟风投机，最后这间公司退市了，我失去全部我投资在这只股票的钱。经一事长一智，我从中得到启发， 不要买濒临破产的股票！我现在选择投资有价值的优质股票，很幸运在年初我开始买入英伟达股票，这只股票目前是我赚最多钱的股票， 我会继续等待时机买入， 并长期持有❤️愿大家找到适合的投资组合， 股票大涨， 早日实现财务自由❤️❤️❤️请加入评论赢虎币 @rL @HelenJanet @SR050321 @Chooer
  • Mrzorro
    05-31
    Mrzorro
    what cause me to make bad financial decisions? I guess only 2 main reasons : follow blindly and greedy!
    Most of the investors got into the trading at least once, listening to financial analysts or following others' opinions (friends or family) without doing research. When the stock is 🚀, you will regret selling for profit too early. Hence, you might chase high or even buy more. when the stock is plummeted, you keep holding it and telling yourself just paper loss ( which is what I am doing now [LOL] [Spurting]) Maybe is time to let it go [Thinking]
  • highhand
    05-30
    highhand
    I am a stock market person...everyday look at the market. why we make mistake is because we never follow rules... either buy wrong company, buy at wrong price, buy too much and never sell at right price.  experience and more learning will solve this problems... [smile]
  • nomadic_m
    05-31
    nomadic_m
    *what causes me to make bad financial decisions?*

    I once ventured into the thrilling world of day trading, and what a rollercoaster ride it was! As the US stock market neared its closing bell (it was early morning in NZ), I was glued to my charts, leveraging my position on TQQQ with intensity. But just as I thought I had it all under control, my tiny traders-in-training (aka my kids) woke up, demanding breakfast with a chorus of "Mum I want this, mum I want that!"

    In that split second, TQQQ took a nosedive, and my heart sank. But thank goodness for that trusty stop-loss order, or else our family's meals would have been in jeopardy! Talk about a wake-up call - literally! It was a close call, but I learned my lesson: never underestimate the power of a hungry child (or a volatile market)!

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