Trader's Thread 05 (Jan 20 - Dec 26)

[behappyalways]

From the Poker Table to the Trading Floor: Inside the Mind of Wall Street Traders | WSJ
https://m.youtube.com/watch?v=CamgBXjnSik

[winston]

Overcoming irrational investing

Some of the more familiar biases include:

Overconfidence: In investing circles this is often referred to as “confusing a bull market with brains.” Overconfident investors refuse to believe their thinking is wrong, even when the market changes direction.

Loss Aversion: People fear losses more than anything else. This causes them to sell winners too soon or hold on to losers for too long, hoping they will rebound.

Crowd-seeking: The fear of missing out leads folks to pile into popular trades, creating bubbles and eventual crashes. Everyone who lived through the dot-com bubble and crash can relate.

And as trading stocks has become easier – you can trade stocks in seconds on your phone – the potential for an emotional decision to wreak havoc on portfolios has only increased.

Source: Investor Place

[winston]

Why New Highs Shouldn’t Stop You From Buying

by Dr. David Eifrig

Many stocks hit new highs because their companies are doing something right. If they keep doing those things, prices can keep rising.

So don’t get hung up on a 52-week high. A stock’s previous price doesn’t tell us where it’s going next. When the valuation is still compelling, disregard my old quip and buy high.

That’s why when someone asks me when to start investing, I say it’s always a good time to invest. Even when markets are volatile, you can find plenty of opportunities.

Source: DailyWealth.com

https://dailytradealert.com/2025/01/02/ ... e_vignette

[winston]

3 Subtle Investing Mistakes I Won't Repeat in 2025 And Beyond

by Alex Carchidi

1. Not updating my investment thesis in a timely fashion
2. Assuming the best outcome would occur
3. Complacency

Source: The Motley Fool

https://finance.yahoo.com/news/3-subtle ... 00734.html