What causes you to make bad financial decisions?
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?
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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~
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]
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)!
這類似於很高比例的溺水受害者是會游泳的人。如果有人不知道如何游泳，他們不太可能靠近水或在水裏玩耍。$老虎證券(TIGR)$
這同樣適用於股票市場。我們不會投資我們從未聽說過的公司。但是我們可能會購買知名公司的股票或者那些我們每天都在使用其產品的公司的股票。
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.