[herd effect] 4 behaviors you need to pay attention to when investing in stocks to avoid becoming a laggard investor

Beginning in May, due to the invitation of the founders of the side business sharing club, a one-month continuous article challenge will begin, and I will make up my mind to write a series of articles about the mentality problems often encountered by new investors, and personal investment experience ( Wish I could write that much XD).

Part of the content of the article will come from the book CL is reading recently - A Walk on Wall Street

From March 2020, more than a month after the epidemic began, the Taiwan stock market has gone from the lowest weighted index of 8681 to 11,000. It is really hard to imagine the stock market panic and depression experienced during this period. Back to the current heat in the end.

In this article, you will learn about the following topics, if you are interested, you can continue to read 😊

• avoid herd behavior
• Avoid trading too often
• Has entered the market, sold losing stocks, not selling profitable stocks
• Other Foolish Behaviors of Investors

So let's start the streak challenge on the first day of May!

Don't go to crowded places

I believe that everyone has heard similar words, and you can often hear, " don't go to places with many people ", " other people are greedy and I am afraid ", but even if you hear it, you know the rationale behind it, and you will still be inspired by the people around you. Or a recommendation from a good friend, just do what everyone is doing.

Because don’t follow the crowd, this matter is actually quite contrary to human nature. The recently written “ [Developing Good Habits] After Reading Atomic Habits ” tells us that the environment is a factor that has a considerable impact on our behavior and habits. big influence.

You can change a person's lunch that day without saying a word or making any announcement; a reader might change your mind about having a green salad for lunch because of a buy-one-get-one-free ad at a convenience store. When we were young, it was often what our friends said to us. We were the easiest to listen to. The readers should have heard a sentence. The five friends you accompany most often will determine your life and career development.

So many examples have been mentioned above, but stocks have not been mentioned yet. In fact, it is to tell us that if we want to find a safe position in the stock market, in fact, it is a problem to violate human nature.

Have you ever heard that when a stock rises by 10%, investors are eager to sell the stock; when the stock falls by 20%, the investor thinks not to sell it, and the stock will naturally rise after a long time. In fact, this kind of thinking It is impractical, because the joy people get from rising stocks is less than the remorse when stocks fall.

But this is how ordinary people think. History has proven many times that it is not very wise to predict trends.

See here, if you are interested in the full article, please go to my website to continue reading!
https://growfortunenote.com/dont-follow-crowd-people/