Human minds are governed by 2 things- Greed or fear. When things seems rosy, greed comes in. And when some things seem to go wrong, fear steps in. Greed and fear cause the downfall of many man in history. And fear being a stronger force, caused the crash of the stock market many times in history.
Everyone hates to lose. It's instilled deeply into our mind. Regardless of qualification, race, religion, not many people like to lose. It just doesn't seem right if there's this person who likes to lose. This is very deadly when it comes to the stock market. People like to average down, thinking that the total price will be brought down if they buy more stock as it drops. But some stocks never go up again. Just look at creative or chartered semi conductors.
There are also people who believe that they have the holding power and therefore, whether the prices go up or down has no effect on them as they can hold until the prices go up. Firstly, like what I mentioned previously, some never went up. And even for those that went up, u're trading away ur time. Might as well cut loss and take the remaining money when the prices goes the other way to put it in something that can generate more money instead of this sinking ship.
Warren Buffet once said, "When people are greedy, be fearful." I find this very true, especially in this current situation. I see many people enter the play these days. Already warned those around me. When someone win, someone must lose. I can only say sorry to them.
posted by Whiteaura II @ 4:41 PM
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