from Kerry Lutz's Financial Survival Network
Today’s stock market is the same as the old one, just with new tools, Robinhood, apps, etc. But emotional excesses have always occurred and still do today. The 1999-2000 Internet Bubble is a perfect example. Not really that much different than the GameStop short squeeze. Jack Schwager believes that the shorts are doing a service, by helping to uncover fraud. We all must become better risk managers. That means, you need to decide whether it’s an investment or a trade. If you don’t want to do the work, just go out and buy an index fund, especially after a bad period in the markets. Being a trader it’s very different. Your time horizon is shorter and your potential risk is greater. For a trader you must pick your stop point before you get into the trade. Never, ever forget, it’s okay to fail. Just keep coming back and you may very well ultimately succeed. Always begin with a smaller stake, never risk your entire nest egg. Avoid impulse trading. It’s a sure way to lose. And perhaps most importantly, remember that while markets may change and technology is always leaping further ahead, emotions remain the same and in the end they move the market.
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from Kerry Lutz Podcasts – Financial Survival Network https://ift.tt/3rPl2TA
