As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Saturday, 19 April 2014

Retail Investors' Behavior in the Market: Selling their best winning stock, Re-investing into other Not-So-Best stocks or Holding on to their worst losing stocks over market cycles???

Just For Thinking ...

Over the last few years of reading so many investing blog postings and chatting in cboxes and forums; Uncle8888 has realised many retail investors are more likely to sell their best winning stocks when market turns bearish and then later "re-invest" into other stocks as it is not easy to buy back their best winning stocks due to Anchoring Effect of their last purchase price.

Their other stocks are free from Anchoring Effect so it is easier to find them as replacement stocks. But, their best winning stocks sold may prove to be the best when market finally recovers at the next market cycles.

This is something we may have to seriously think over it. Right?

1 comment:

  1. It is important to stay the course.

    Disregard the market noises.

    Trust your own (both long and short term) Proven investment judgement, over market cycles.


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