Which is more unpleasant in the stock market, Missed a stock rally or Caught up in a down trend?
Miss a stock rally
It means you fail to buy a potential stock that proved to increase much.
For example, I regret that I should have bought $Netflix(NFLX)$ at $200.
But if you look at the long term, there are countless opportunities for the stock market to rise in the future. As long as you have capital, there is no need to worry too much about Miss a rally.
Caught up in a down trend
It means you buy a stock at a down trend, and it keeps declining after you bought it.
For example, I regret that I bought $NVIDIA Corp(NVDA)$ at $180 and it plunged to $100.
But when you look at the long term, if the investor keeps holding on to the stock until it rises, he or she will get his or her money back.
If you can view the case of "Caught up in a down trend" as saving your money for a fixed term, you won't feel too bad as you won't lose money after it rises.
My opinion
I think "Caught up in a down trend" is definitely worse for me.
When investor loses money (most of investors have a limited amount of money), investor's mindset and emotion will be affected when stocks keep falling. This panic may result in impulsive trading and increase losses.
After experiencing a longer red portfolio performance at the bottom, as soon as there is a slight rebound, investors will choose to sell and close their positions, missing out on the next rise.
Which one is worse for you: Miss a stock rally or Caught up in a down trend?
Do you have the same experiences?
Join our topic to win tiger coins~
How to participate:
You can refer to the format:
I think "Caught up in a down trend" is worse for me because I bought xx at xx. I lost $x and felt so xx when I kept looking at the red numbers.
Comments
i bought $老虎证券(TIGR)$ at high and catch the falling knife....
I bought it at 21.6, added some at 18, added again at 12, 8, 6, 4, …
I hold it about 2 years already [捂脸]
@Tiger_chat
It was a very painful lesson that I need to do my own analysis and not be swayed by my friend. Turns out he bought when it was lower and sold shortly after I bought because I took too long to decide buying $Tesla Motors(TSLA)$. By then, the rally was pretty over due to $Twitter(TWTR)$ fiasco. Now all I see is a painful 💔