US stocks were hit hard in 2022 and posted the worst performance in 14 years.
During the year, investors may experienced many irrational trades.
For example, I blindly followed the news and bought a declining stock, and sold it immediately after finding that it continues to fall, and bought a stock after reading an article, and so on.
Look back at what irrational trades you have made and write down three warnings to yourself.
$ARK Fintech Innovation ETF(ARKF)$ What can we say about 2023? We’ve just come off a truly challenging year, with a difficult bearish trend pushing stocks down across the board, especially in the tech sector. In this environment, transparency – the ability to see beneath appearances – has grown more important than ever. Cathie Wood, founder of the ARK Invest funds and a long-time booster of technology stocks, describes the current economic conditions as a crisis. According to Wood, we’re in a moment of declining money supply, deterioration of the commodity markets, and a contraction of bloated inventories; and Wood tells us, “I believe that the current market dislocation presents an opportunity for innovation strategies to thrive when equity
My 3 Don'ts When It Comes To US Market Invest. Wanna Know ?
S&P 500 performances for Past 2 years If there is one thing every retail investor need to realize is, the US market has a mind of its own. Just when you think the coast is clear and market will rally, it could plunge and vice versa. Above is S&P 500 past 2 years (betwn 28 Jan 2021 to 29 Jan 2023) - YTD performances. Index peaked at 4,766.18 on 27 Dec 2021. Back in Dec 2021, CPI was already at 6.5% and rising; 3 months before the Fed finally implemented the first of seven interest hikes in Mar 2022. Below were banks & funds house's Nov 2021 predictions on S&P 500 whereabout by end 2022 : Fundstrat (Tom Lee) - 5,600. Ever the optimist & never accurate in all his forecasts. Goldman Sachs - 5,100 JP Morgan - 5,050 Wells Fargo - 5,000 Morgan Stanley - 4,400 Needl
Don't chase hot stocks: It's easy to get caught up in the hype of a stock that's been performing well, but remember that past performance is not indicative of future results. Instead, focus on fundamentals and long-term prospects when making investment decisions. Keep an eye on market trends: Stay informed about current events, economic indicators, and market trends that could impact your investments. Have an exit strategy: It's important to have a plan for when to sell a stock, whether it's based on a specific price target, or a change in fundamentals. This will help you avoid holding on to losing positions for too long.
Be cautious of stock manipulation: Some companies or individuals may engage in manipulative practices to artificially inflate the price of a stock. Be sure to do your own research and stay informed about any red flags or suspicious activity. Don't chase hot stocks: Just because a stock is receiving a lot of media attention or has seen a recent spike in price, it doesn't necessarily mean it's a good investment. Be sure to thoroughly research any stock before investing. Understand the risks of investing in high-growth companies: Companies that are growing rapidly may have high potential for returns, but they also often come with a higher level of risk. Be sure to fully understand the risks involved before investing in these types of companies.
Stock Market Warning Tips three warnings to remind in stock markets Past performance does not guarantee future results: Stock market returns can fluctuate greatly over time, and the performance of a stock or index in the past does not necessarily indicate how it will perform in the future. Diversification is important: Investing in a variety of stocks, bonds, and other securities can help spread risk and reduce the impact of any one investment performing poorly. Be aware of fees and expenses: The costs of buying and selling stocks, as well as management fees for funds and other investment vehicles, can add up and eat into returns over time. It is important to be aware of these costs and factor them into your investment decisions.
Lesson I've learnt over Trading, more than 3 warnings to remind myself! 1. Historical performance of a company does not guarantee future performance. 2. The market is incredibly sensitive to news, both good and bad. (Might not apply to all market but US yes) 3. Target prices of analysts can, and will be, revised. 4. Don't put all my eggs in one basket 5. Don't fall in love with any stock, it won't love you back (this was one of the first things a very good friend of mine told me). 6. If one is trading, remain disciplined with things like taking profits and cutting losses. 7. If one is investing in the long-term, then holding power matters. 8. Have a plan, and stick to it. @TigerStars
These are my 3 warnings for investing in the sstock market. Past performance is not a guarantee of future results. Just because a stock or market has performed well in the past, it does not mean it will continue to do so in the future. Diversification is important. Don't put all your eggs in one basket. Spread your investments across different sectors, industries and even countries to reduce risk. Be aware of market bubbles. A market bubble occurs when prices of assets, such as stocks, rise to levels that are not supported by fundamentals. This can lead to a sudden and sharp drop in prices. It's important to be aware of the signs of a bubble and to not get caught up in the hype. Lets all hope we can experience another 10-year bull run after all the dust settles. Cheers🍻.
🌈🌈🌈2022 was a year that will forever be etched in my mind as one of the worst in my investing experience. Nonetheless there are valuable lessons to be learnt from it. The 3 Warnings To Remind Myself In Investing in 2023 are as follows : 1. Never Buy Shares Because of The Market Hype. I learnt a valuable lesson when I invested in $DiDi Global Inc.(DIDIY)$ during its IPO and held it to the bitter end when it was delisted. There was much hype and interest when it was first launched but in the end, DiDi disappointed its shareholders when it opted to delist. An IPO stock also does not have a good track record of its performance too. 2. Never ignore a stock fundamen
Hold or sell? Run or stay? Believe that everyone is uncertain with the latest announcement made by $Metacrine, Inc.(MTCR)$ . When the President of a group being terminate his position, do you think the company still able to continue operate their business? Or dissolve their business is the onlyway to do do? Based on my current stock monitoring, believe that this company will stay alive for the next 5 years and something excitement will behappen very soon? Who'll be taking over them? Elon Mark?
The COVID-19 pandemic has attracted a wave of new investors who may think investing is simple and the stock market is platform to get rich quickly. Some may have probably realised that the market is probably a bigger and way more complex animal than it appears to be as most portfolio get decimated under a rising interest rate environment in 2022. With 2023 likely to another challenging year as recessionary fears starting to haunt investors, it is critical to know the common pitfalls and be prepared to avoid them. 1. Failing to diversify the portfolio It is human nature to have favourite or preferred companies. Posts containing headers such as "How much you have earned if you invested $xxx in xxx stock" are plastered over social media, and also
1) Never put all my eggs in one basket I.e. Diversify The logic is here is that. “If you invest in things that do not move in the same direction, at the same time or at the same pace, then you will reduce your chances of losing all of your money at the same time or at the same pace.” 2) Invest only excess funds Excess funds are the cash that exceeds the cash required for day-to-day operations. 3. Never sell during a down trend (under normal circumstances) Prices will rebound. "If investors sell when the market is down, they will realize an actual loss. A lesson many investors have learned is that if they sit tight and wait for the upturn to come, they won't realize a loss. In fact, they may even see their portfolios gain more value than they had before the downturn.”
WARNING - THE MIND You can have the best method and money $ managemt but without a good mind* (WARNING), generally you won't do well when you mind starts to waiver and throw off earlier set in-place method & $ mgmt
The good news with most trades/positions is that they are liquid enough to exit when you see some of these warning signs. Trading psychology can be a good predictor of when to exit a trade. A good example is when there is an obvious trend reversal. High-volume days are usually quite volatile, and market movers have the ability to influence trades that may leave you "holding the bag," and it is therefore considered good practice to book profits before such days.
looking back I still remember, during the 2022 epidemic in Shanghai is stuck at home, has a lot more free time, and has been investing for a long time, and rarely sits down to write something. Today, it is like organizing this activity to talk about the reasons why investment are easy to make mistakes and lose money in the process. Here are some of my mistakes in 2022 that I would like you to avoid: Make a Budget with fees: ♥, don't believe that you can make money by sticking to your investment. Be careful with your budget. In investment, do not make money is a loss, if the investment does not lose money, then after deducting the purchase fees, redemption fees and other related fees, the remaining is the real income; if it has already lost money, the loss is even gre