RE: balls of steel20 Aug 2020 23:50
neil - the main skill here is not to think of your stocks' value as money. Casinos got it right - they hand out chips that folks don't directly associate with real cash, and go on to gamble way beyond their risk appetite/abilities.
Successful gambling is a skill and you need to teach yourself how to gamble correctly.
Some key points:
- Bankroll management: make sure you can survive a big downswing. "never gamble more than you can afford to lose" if you like. If SNG goes under tomorrow morning, I'll lose half of my portfolio but I won't be broke.
- Focus on decisions, not winnings/losses. don't let the cash cloud your analysis. Correct decisions win in the long run, even if they lose in the short run.
- Do your research. In-depth research is good, but even basic research is a lot better than nothing.
- Never fall in love with a stock. There will always be more "once-in-a-lifetime" opportunities. Just this year, EUA, GGP, SNG come to mind. Plenty of others too.
- If it fecks with your mind, sell. No profits are worth developing mental health problems.