RE: Next 6 months16 Feb 2021 14:26
Thanks for being so frank Tom.
If you look at the words you used, "Irrational", "Tempted", "too good to be true" they are emotional terms for what should be or you think is, a rational decision.
You want to get in lower because you are greedy (thats ok, I'm not being rude). If it picks up to 98p you might, (through fear of missing out), buy then instead of now. Fear and greed are 2 of the most powerful human emotions.
The market is not a benign place for people to buy and sell shares. It is actively trying to take money off you for its own gain.
That's why MM's when they can, play around a bit with prices to get the reaction they want from those susceptible to emotional pressure.
Again fwiw I always have a plan, I have 2 exit prices on where I will sell, (one if it goes well, and one if I am wrong and it goes south), and approx. time line and then from there I can judge a risk reward.
I buy at 68p and think 100p is a target. Gain 32p. If I am wrong out at 65p, 3p loss. That is a 10-1 risk reward. ( Brilliant!! anything above 3-I consider adequate).
I don't understand how anyone with their hard-earned cash, buy stocks not knowing why they got in where they did, no idea when they will crystalise the loss if they are wrong and having no idea of a target for when to sell or in what time frame.
Its like backing a horse where you don't know the distance or the odds or when the race will finish, and instead of a £5 each way (which you wouldn't do by the way because that would be madness), you put on £10k to win.