Classic Market Illusions! Have You Fallen for Them?
We’ve all been there. One moment you’re feeling like Warren Buffett, the next you’re staring at your portfolio wondering where it all went wrong. Trading both US stocks and our local STI isn’t just about charts - it’s a psychological battlefield where our own minds become our worst enemy.
The “This Time Is Different” Trap
Remember when everyone piled into tech stocks in 2021? That little voice saying “this time is different” is your first red flag. Whether chasing meme stocks on Wall Street or jumping into Singapore REITs during property booms, we convince ourselves that past patterns don’t apply to our current “sure thing.”
As behavioral finance research shows, “overconfident investors overestimate the quality of their information and underestimate risk.” Sound familiar?
The Singapore Shift
I started investing in 2018, putting all my money into local stocks like many Singaporeans. Two years later, I had switched entirely to US equities. But here’s the kicker: was I just trading one set of illusions for another?
The STI reach intraday ATH in March 2025 at 4005.18 points with modest gains, but we still think the grass is greener in American markets. We see Tesla’s wild swings or Apple’s steady climbs and think local banks are “boring.” But boring sometimes keeps your money safe.
The Waiting Game Illusion
“I’ll just wait for the dip.” This paralysis kills more portfolios than market crashes. While you’re waiting for the perfect entry, opportunities slip by. The STI climbed 17.47% year-over-year - how many missed the ride waiting for a better price?
Breaking Free?
When you catch yourself thinking “this is definitely going up” or “I’ll wait just a bit more,” pause. Ask yourself: Am I making this decision based on data or emotions?
Whether trading US tech giants or Singapore blue chips, the market doesn’t care about your feelings. It rewards discipline, not hunches. The most successful traders recognize their illusions early and cut losses fast.
Every expert was once a beginner who fell for these same traps. The difference is learning to spot them before they spot your wallet.
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.
- EvelynHoover·06-23It's so true1Report