Why can't you buy skyrocketing stocks?

Today, let's talk about why the vast majority of investors are unable to buy skyrocketing stocks. 😅

Below is a stock chart.

At the current price, would you buy it? The answer for most people is absolutely no.

Let's take a look at the next trend~

Such a strong stock has gone up so much; I believe many people in the market must notice it every day.
However, I can honestly say to you that there are very few investors who dare to buy it.

Investors generally prefer to buy stocks that “rise from the bottom” rather than stocks that have formed an obvious “upward trend.”

They don't buy stocks with an upward trend. It's not that there is a bearish signal in technical analysis, but they seem to have gone up too much and are afraid it will plummet 📉.

Simply put, it's a fear of heights.

So, think carefully. Is the real reason that dominates whether investors buy or not because of technical analysis or psychological factors?

Studying technical analysis is not difficult at all; however, seeing strong stocks, few people dare to catch up. 😅

The reason you choose stocks that rise and rise at the bottom is because they seem cheap, “the price is at the bottom, making you feel safe.”

Why are you afraid to buy stocks that are already rising? It's because you're afraid to “buy at the highest point.”

You've probably discovered a skyrocketing stock a long time ago, but the more it rises, the more afraid you become.

In the end, you chose to watch it go up all the way and miss out on making money.

Actually, once a trend is formed, it won't change easily. We should be friends with trends.

There are only a few people who are willing to buy stocks that have already gone up a wave. Because the human idea is that the potential room for growth is limited, while the potential downside is relatively large.

People who are afraid of going higher are, to put it bluntly, worried that they will buy at the highest point and lose a lot of money if the stock price reverses.

However, if you set a stop loss point of 8%, then regardless of whether you buy at a high or low point, your potential loss is 8%, isn't it?

Even if you buy at a low point and allow the stock price to fall, you will lose a lot just like you won't stop loss.

“I'm afraid of the high, I don't want to chase the price, I think the stock price will reverse” is a common mentality among retail investors 🤦, and it is also a misperception among retail investors. 🙅

Always remember, “The risk comes from your stop-loss settings and position management, not the stock price.”

Winners bravely follow the trend 💯, while losers don't dare to follow the trend.

Today, I'm just going to share that first.
Next time, I'll continue to share more detailed operating strategies.
Remember to like+follow, don't get lost on the road to investment~