Fear of Missing Out: Buying when prices rise
# | Name | Performance 7 days | bought in this wikifolio, among others |
1 | 4,9% | ||
2 | 0,1% | ||
3 | 6,4% | ||
4 | 16,9% | ||
5 | 5,3% |
The "Fear of Missing Out" – FOMO for short – leads traders to buy stocks whose price has already risen significantly. This trading motive can currently be observed with
Buying the Dip: Buys when prices fall
# | Name | Performance 7 days | bought in this wikifolio, among others |
1 | -0,4% | ||
2 | -6,0% | ||
3 | -5,2% | ||
4 | -2,0% | ||
5 | -6,9% |
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 German jewelry mail order company
did not fall significantly in the last trading week, but a price correction has been observed since the end of June. Now, many traders seem to think again that the share is fairly valued.Taking Profit: Selling when prices are rising
# | Name | Performance 7 days | sold in this wikifolio, among others |
1 | 0,2% | ||
2 | 12,0% | ||
3 | 5,6% | ||
4 | 4,2% | ||
5 | 3,6% |
The "taking profit " motive – i.e. selling when prices are rising – could be observed last week above all with the German telecommunications equipment manufacturer
. Traders are currently selling the fiber optics specialist's stock at its multi-year high, after the security performed at more than one hundred percent plus over the year. The main reason for the stock price gains last week was the leaking of a takeover bid by the U.S. group . It wants to merge with Adva to form the company "HoldCo".Jumping the Ship: Selling when prices are falling
# | Name | Performance 7 days | sold in this wikifolio, among others |
1 | -2,1% | ||
2 | -3,7% | ||
3 | -7,3% | ||
4 | -4,7% | ||
5 | -4,1% |
Selling when prices are falling – this is what characterizes the "Jumping the Ship" category. Last week, this fate befell the German building materials group
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