Yegor's avatar
$174.9m follower assets
I been seeing more and more folks selling out of their holdings and either going into cash or buying something else just because the original company is down and it’s (probably) painful to look at the loses.
A few pointers to deal with this “feeling of discomfort”
If you are selling just because you are down and not comfortable at looking at your portfolio maybe just log out and take a breather before making any major decisions (sleep on it)
Sometimes we do make mistakes and have to cut losses but sometimes we just need more time
If you do sell and buy something else, how much time did you spend on researching the new company? What makes you think that this one is better? No one knows better then you
If you are making some mistakes but you learn from them they are not mistakes but lessons and those are okay to make. The problem is when you are making same mistakes time after time and maybe should not be doing individual stock picking.
If you watch twitter or other stock related TV channels maybe it’s time to take a break from it and just focus on some other things
Reflect on the NOW to be able to handle the turbulence otherwise there is no point of doing this because the next time it’s going to be the same thing again
I hope this will help someone , if you have any questions about psychology of the market or need any feedback I’m more then happy to help whatever way I can
I can’t tell you if you should buy or sell something but I can try to guide you and help find your personal solution.
DMs are open
PS if anyone has any tips or tricks they want to share with others leave them in the comments or create your own post and share your thoughts
Become conscious investor.
Jensen Butler's avatar
Thank you for this! Everyone has their go-tos for at least trying to combat some emotional decision making. One thing I love about Commonstock is how aware a lot of investors on here seem to be of that element of investing - Not blind claims and forcing content like ego driven Twitter flexes in my honest opinion…the transparency here is 2nd to none (literally)
Yegor's avatar
@jensen yeah market is already giving tough punches no reason to kick people while they are already down
Conor Mac's avatar
I have been trying to spend less time listening to the opinion’s of people that might be noise, and de-screening to think for my self. Important to tune it out when things get particularly noisy.
Yegor's avatar
@investmenttalk great important points
Scoreboard Investor's avatar
I really focused on building guardrails to follow - routine maintenance activities that include buying, selling and rebalancing. I have tried to focus on if my time horizon is long buying/selling a few dollars more or less isn’t going to make a huge difference in the long run
Yegor's avatar
@scorebdinvestor great point!
Golden Lake Partners's avatar
"If the thought of panic selling crosses your mind, close your computer and take a walk down the street" <--- What I do when I want to panic sell
Yegor's avatar
@goldenlacllc great tip!
Carter Kilmann's avatar
Wise words, my friend.
Yegor's avatar
@carterkilmann thank you 🙏
Joshua Simka's avatar
This is why I love an investing journal. On a day when the market is down -3.5% you can flip back to a day when the market was in a similar ballpark and revisit how it felt, how you handled it, and whether that's an approach you want to take again (emboldened by the confidence that you've managed it before) or decide to behave differently this time.
Yegor's avatar
@tomato journaling is very important both in the short term and long term
Investor from Nepal 🇳🇵's avatar
Logging out might be good idea. It hurts to look at the portfolio when its down like 4% a day. Also, basing sell/buy on your research rather than others' opinion is the key imo
Yegor's avatar
@investor_from_nepal good points, it seems harder to do for some though
Fat Baby Funds's avatar
Changing strategy midstream is very dangerous. I try to think very slowly, taking a few months to make sell decisions. If I ever start to waver in those months, reset the timeline!
Leandro's avatar
This is a great post. There are many long term secular trends that are being completely ignored simply because the next 1 or 2 years might be tough and that's a clear opportunity for those who are able to look a bit further away
Yegor's avatar
@invesquotes exactly! The difference between then and now is you just have to roll up your sleeves and do some actual digging/work and just be patient
WeAreDayTraders's avatar
once they sell that is gonna be end of this down fall, it works always the same way.
Amaeze Amadi's avatar
I'm buying in $UVXY I learning just oneday why they are about. It was simple that it's loudly spoken about in every news stock CBS, CNN forecast on last week's daily alerts..
Nathan Worden's avatar
Fantastic post Yegor— well said :)