Fear of Missing Out: Buying when prices rise
| # | Name | Performance 7 days | bought in this wikifolio, among others |
| 1 | 340,2% | Special Situations long/short | |
| 2 | 5,5% | Nebenwerte Europa | |
| 3 | 8,9% | Tradingchancen dt. Nebenwerte | |
| 4 | 8,2% | Wachstum und Chancen Offensiv | |
| 5 | 16,4% | Strategie Invest 303 |
Last week, one topic dominated the financial community: "Wallstreetbets" and their fight against the short sellers. Not surprisingly, this was also reflected in the buying behavior of wikifolio traders. The "Fear of Missing Out" – FOMO for short – led traders to buy the stock. Trader Paul Pleus is part of that group. (PPinvest). In his blog, he comments on his Gamestop investment as follows: "What does history teach us? In 2008, there was a short squeeze on the VW common stock. By liquidating their short positions, the price of the VW ordinary share exploded and rose from around EUR 200 to over EUR 1,000 within two days! I try to profit from rising Gamestop prices in my wikifolio PPinvest Searching Alpha, AUTOPILOT and All Weather.“
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Buying the Dip: Buys when prices fall
| # | Name | Performance 7 days | bought in this wikifolio, among others |
| 1 | -6,2% | Trend und Momentum | |
| 2 | -21,7% | Cybersecurity Innovators | |
| 3 | -6,1% | Substanz plus Soliditaet | |
| 4 | -10,1% | GroDiVal TrendInvest | |
| 5 | -41,3% | AA+ Master-Trading ohne Hebel |
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. This category of the weekly review is dominated by Wallstreetbets as well. The stock was another target of the Reddit community. The stock shot up from just over EUR 3.5 at the beginning of the week to over EUR 5.5, only to fall back to just above the initial level by the weekend.
Taking Profit: Selling when prices are rising
| # | Name | Performance 7 days | sold in this wikifolio, among others |
| 1 | 15,3% | 25 Jahre Börsenerfahrung | |
| 2 | 9,4% | Fein Aufgehebelt seit 2019 | |
| 3 | 5,4% | Shorttimetrading | |
| 4 | 13,4% | Special Situations long/short | |
| 5 | 17,8% | Wasserstoffwirtschaft und BZ |
Last week, wikifolio traders took profits primarily with . The stock of this Polish games manufacturer recorded a gain of around 15 percent in the past seven trading days. Dirk Althaus (techguru) provides a possible explanation for the price jump: "CD Projekt's stock has rallied strongly recently after falling quite a bit in the weeks before. In the last few days, Elon Musk has been tweeting about Cyberpunk, which may well have helped boost the stock." Althaus took this opportunity to part with some of the CD Projekt stocks in his wikifolio Augmented Reality Innovators. Currently, the security is weighted at 1.8 percent.
Jumping the Ship: Selling when prices are falling
| # | Name | Performance 7 days | sold in this wikifolio, among others |
| 1 | -10,9% | SmallCapGermany | |
| 2 | -6,2% | Nachhaltige Dividendenstars | |
| 3 | -19,0% | Nordstern | |
| 4 | -13,3% | firstclass stock picking | |
| 5 | -7,3% | Intelligent Matrix Trend |
Selling when prices are falling – this is what characterizes the "Jumping the Ship" category. Last week, this fate befell the stock of the German wind turbine manufacturer . However, sales were observed not only with Nordex, but with the entire category of green tech stocks. Considering also that the stock was trading at an annual high prior to the losses, it can probably be confidently argued that this is a normal correction rather than a hasty abandonment of a sinking ship.
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