This storm is different.
Said every investor ever that bought high and sold low. Allow me to explain.
Drops in the market and individual stocks are caused by fear. Fear is caused by the unknown. SO DROPS ARE CAUSED BY PEOPLE THINKING THAT “THE STORM IS DIFFERENT”. If things didn’t seem different this time, and people weren’t unsure as to whether or not the market would recover, and there weren’t new external factors putting pressure on the market, then there wouldn’t be a drop in the first place.
Inflation’s up? “Oh well, it’s no different this time, the market always recovers”. Rates are going up? “Oh well it’s okay things will even out no reason to sell”. If everyone thought like this, nobody would sell and the market wouldn’t go down.
To take that one step further, fear = opportunity. Everyone knows to “buy into fear, sell into greed”. Well fear means buying into uncertainty. Will things recover 100%? We actually don’t know for sure. But looking historically and thinking unemotionally, you can infer that there’s a very, extremely high chance that they eventually will.
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Musky : Most who sell from fears are retail traders, some due to margin calls. Institutions, HDF. For investors not an issue. Especially those buy low sell high or wait long long 5 years, 10 years. There are also those that cut loss now and regain back at lower prices. But yes I agree for newbies that will get affected by the panic selling mindset.
UFTWYOP Musky: Couldn't agree more
71099812 Musky: You got them trading bots doing the selling now.
HippoTrade : dude if no one bother about inflation and rate and no one is selling, it's a no brainer game....
UFTWYOP HippoTrade: My personal view, thank you for your opinion
UFTWYOP 71099812: