you have 4 choices
$NVIDIA(NVDA.US$ i know this ticker has experienced quite a bit of volatility recently and with increased retailer participation it's clear some people are getting anxious.
now you have 4 choices when you're already owning some shares of a stock and it starts to decline
1) panic and sell
2) do nothing
3) add more shares as the stock price dips further
4) sell when price hits a target stop loss, take the L and move on
now many of you are choosing to do 1 and that is an understandable decision you don't want to lose money but you need to understand one thing that the market rewards people who take risks more than people who don't. and the second thing is the market rewards time in market. you can be the dream trader who sells at tops and buys at bottoms but let me tell you if you're a retailer coming in with minimal technical knowledge and no time to commit to watching the ticker every minute during market hours, it's going to be a very mentally and physically exhausting journey
so i suggest you choose between the 2nd, 3rd and 4th choices.
for the 4th choice the moment you click the buy button you must decide a stop loss number, a percentage you're willing to lose. the moment the price drops below that you need to be disciplined and heartless and press the sell button. you can't waver and set a lower stop loss hoping for things to improve.
if you're going for 2nd or 3rd then you need to have 1 thing. that is conviction in the underlying BUSINESS. a lot of people tend to forget that with stocks you're buying a piece of a BUSINESS. take 3-6 hours of your time to read about the business, to understand what they do, who are their customers, who are their management, what does the future look like for them, how is the sector doing, how is the market doing. if you did this and you understand that the BUSINESS is set up for success then price fluctuations are not going to affect you emotionally . in fact they will give you the courage to do option 3 which is the bravest choice and tends to be the most rewarding in the long run.
by long run I'm talking about years, not 1 day, not 1 week, not 1 month. years.
that is how you make money as a retail investor. the market tends to reward patience more than panic. but you need to wait it out. you need to stop letting your emotions take over.
that's all i wanted to share.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
aims to identify stocks with rock solid growth fundamentals with 10x potential. also dabbles a little bit in trading
281Followers
122Following
1458Visitors
Follow
Aaron Invests (AI) : Going full agro learning on NVD and NVDL
103422981 : preach!
c_mk : Nice
10102247 : Do not blindly follow this person’s suggestion.
MomentumPython1337 OP 10102247 : please suggest alternatives. what did I miss?
MomentumPython1337 OP 10102247 : i am not advising people to buy this stock now and hold it like a bag btw. i said to research the company and understand it better. if you're someone who can get success from completely ignoring the fundamental business and just trading based on technical analysis, you are not the target audience for this post.
and also i mentioned option 4. nothing wrong with setting a stop loss and taking the L. but you need to do it with commitment.
JC M : Maybe everyone here are millionaires, knows everything whats going to happen every trading day
scarymew : no1 is all newbie error. which I has been there, burn and learned my lesson.
now is more towards 2 and 3.
skm69 : hold andwait it out
Simon 5183 : Never stop and sell a stock that has been rising in price for a period of time (this is your favorite move for bears); as long as you ignore it, it will rise back to the original price in a few days!
View more comments...