I don’t know about you guys… but one of the most common beginner mistakes I’ve made (a bunch) over the years is getting trigger happy aka buying a stock too quickly. I feel like this happens to the best of us, when the excitement of a new stock comes on your radar. Especially if it’s performing well, you feel a real sense of urgency like you “have” to add it now haha. Even today, after being an investor for 20 years, I still feel those urges. But here’s a couple things that I tell myself to help fight it. 1. Sleep on it for at least a week It rarely works out in your favour if you’re buying a stock based on that excited/FOMO feeling. Reality is, if you fast forward 15 years… if it truly is a good stock to add to the portfolio, it won’t matter whether I bought it today, tmr, or next week. But what will matter is if you bought a stock prematurely based on excitement that you shouldn’t have. Usually, after sleeping on it for a week, the excitement has worn off and you can make a logical, rational decision. 2. Warren Buffett punch card analogy Remember the classic Warren quote/saying where you picture having a punch card with only 20 holes - these are your lifetime availability for investment choices. While a simple mindset shift, it does make you think twice about whether this random stock you saw on TikTok is worthy of a space in your long term portfolio. Biggest lesson that I’ve learned over the years of making these mistakes, is that it’s very easy to go overboard. Either by buying too many stocks, or buying quickly driven by your emotions. My little tip is take a breather, take your time… the opportunities will always be there.
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27 Comments
Jason
@stocksnsquats · 7mo
I like the bar of soap analogy. “Think of your portfolio as a bar of soap, the more you play with it the less you have”
Satwinder Singh
@thevalueinvestor · 7mo
If it can’t survive a week of thinking, it probably won’t survive 15, 20, 25…years in the portfolio.
Daniel Ocasio@esquire1229 · 7mo
Where I am at my weakest is being trigger happy on red. I set a rule for my self.....I only go in heavy if the pull back is 1% or more ( i am an ETF guy so it works) so far I've followed my own rule 40% of the time this year
YYZ Logic
@yyzlogic · 7mo
Spend less than you earn, avoid debt, and consistently invest the difference into a low-cost, total stock market index fund like $XEQT while ignoring market volatility. It really is that simple to become wealthy.
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