Fear of Missing Out: Buying when prices rise
# | Name | Performance 7 days | bought in this wikifolio, among others |
1 | 18,2% | ||
2 | 27,4% | ||
3 | 11,1% | ||
4 | 8,4% | ||
5 | 5,8% |
The "Fear of Missing Out" – FOMO for short – leads traders to buy stocks whose price has already risen significantly. Among others,
Buying the Dip: Buys when prices fall
# | Name | Performance 7 days | bought in this wikifolio, among others |
1 | -1,4% | ||
2 | -48,2% | ||
3 | -17,1% | ||
4 | -21,7% | ||
5 | -5,6% |
The "buying the dip" trading motive is evident when traders buy falling stocks in the hope of a bottoming out – in other words, the imminent turnaround. The stock of the online broker
can be assigned to this category. However, the paper lost only slightly on a weekly basis. After an incredibly strong rally since the stock markets marked the Corona pandemic low in March last year, flatexDEGIRO failed twice at the previous high of around 112 euros in recent weeks. Last week, too, traders have now bought the stock again, hoping that the old high could finally be overcome. At least from a chart perspective, there should not be much standing in the way of a further increase at that point.Taking Profit: Selling when prices are rising
# | Name | Performance 7 days | sold in this wikifolio, among others |
1 | 8,3% | ||
2 | 15,0% | ||
3 | 27,2% | ||
4 | 9,1% | ||
5 | 23,5% |
Everything is relative on the stock exchange. Whether a stock makes profits or losses or rises or falls is always a matter of perspective – or more correctly: the time window. A case in point: while
Jumping the Ship: Selling when prices are falling
# | Name | Performance 7 days | sold in this wikifolio, among others |
1 | -6,6% | ||
2 | -12,8% | ||
3 | -9,5% | ||
4 | -4,3% | ||
5 | -8,4% |
Selling when prices are falling – this is what characterizes the "Jumping the Ship" category. Last week, for example,
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