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?

avatarMrzorro
2024-05-30
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]
avatarZash
2024-05-30
For me, I am very anxious and determined to change my family financial situation. Also to help relatives and friends to achieve financial independence. So I tend to invest heavily on stocks I believe in but as soon as I invest into a stock that particular stocks will go down and will end up losing all my money.
avatarAqa
2024-05-30
❤️🦀🍤🍖🥘🍜🍺🍺 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. 🦴🦴🦴
avatarSamlunch
2024-05-30
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avataricycrystal
2024-05-30
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
avataricycrystal
2024-05-30
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
avatarLeonTse
2024-05-30
You can't be too trusting of any company that their share will go up in the long run. No matter how great their technology seems to be, market decides if it's viable.
avatarMccoy
2024-05-30
If you cannot manage your emotions, you will make bad financial decisions.
avatarLiverpoolRed
2024-05-30
I am buying company share $ResMed(RMD)$ that I am well known. Of course I will not put all eggs in 1 basket. But this company share let me earn quite a big profit in my portfolio.
avatarDdAlpha1
2024-05-30
Being too overconfident about a certain situation often leads me to wrong timing. Correct in the assumption of why a stock will go down or up based on reports and financials but wrong on reading how soon or when it takes that little bit longer. but we cannot have no confidence as well as to lack conviction would be worst. So I always remind myself when the going gets too good, read the charts! Find the supports and make extra room. Don't set too many positions is one of the most important things I've learned. This keeps margins at bay and profits to roll.
avatarRT2022
2024-05-30
Too much consideration, dont want to take risk, no risk no ambition to learn new skill, make life just simple day after day $Tiger Brokers(TIGR)$
avatarBioman21
2024-05-30
Speculate based on what Reddit users say online HODL Make sure I have my own ideas as to how I want my trading to go is the most important part of my investment journey right now. Continue to read and watch videos of experts. Just be sure that I have my own decisions at the end of the day 
avatarJasonTan0911
2024-05-30
Most regret mistake is trade options, don't trade options...you will lose money. Trust me
avatarbmng
2024-05-30
We know that must avoids FOMO but sometimes lost determination or buy the wrong company at the wrong price or even right company but buy at the wrong price also can create trouble.
avatarzerolih
2024-05-30
I think it's fine to buy companies that we are familiar with, but have to study the fundamental and technical analysis as well. I've made mistakes previously, such as taking a buying suggestion from random strangers online, or following the crowd when certain stocks are hot. Now I prefer to buy steady dividend stocks.
avatarhpleong
2024-05-30
I am sure many of us has trip and fall. Is a mixed of FOMO or just herd follower.  I am one of those. What I learn is eventually back to fundamentals. Understand what you are getting and not FOMO or herd instint.   
avatarMojoStellar
2024-05-30
I have been there...for bad investment due to fomo, emotions and lack of investment knowledge. Quite a high price for falling bad investment yet a learning experiences that one will remember. The reflection from this bad investment experiences, never felt bad, always eager to learn from others and sharing good and bad investment. Always gratitude to earnings.
avatarMHh
2024-05-30
avatarMHh
2024-05-30
If i follow the crowd or lost patience and decided to cut loss
avatarhighhand
2024-05-30
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]
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