The missed benefit syndrome in the investor.

25 сентября, 2021 от fake Выкл

«Let’s say without a trick: greed is bad»

(c) Song from M / f «Treasure Island»

Pleasant time has come. That’s earlier, how? Previously, the people were rude, uncomplicated, poorly educated. You did not know how to call different natural phenomena to call beautiful, scientifically.

If, for example, I didn’t want to work before, but I wanted to live Kucherally, I called it with all sorts of words bad. «Tunes», there, for example, or «drone» or «loaf». Well, where does it ask, is suitable?

I remember the cartoon class as a child watched — «Vovka in the trident kingdom.» There Vovka expresses the local hardworking king (personally painting the fence in his spare time) his vision of «royal life» — not to do and argue with cakes. And in response, the king causes the guard and demands «cut off the head — Tunyads».

Whether it’s now — «Earlier.» This is the music. Sounds beautifully, to the French way.

So here is the «missed benefit syndrome», which this article is dedicated. Beautiful name. There is still an English option — the abbreviation «FOMO» — Fear of Missing Out. It sounds even romantic. How was Alexander Sergeyevich about the «Fashionable Deal» … «Like the English Splin, in short: Russian Handra)))

So here — «Fashionable ailment» from our investors. Syndrome missed benefits. Let’s deal with him.

First, immediately let’s say that FOMO is a phenomenon that is wider than the financial market. This is, in principle, the property of people to worry about missed opportunities — in absolutely any sphere — in economic in particular. In the article, I only cane only its manifestations in the securities market. I’m still not a psychotherapist, but an invest-blogger, so I won’t wake too wide))

In the securities market, the missed benefit syndrome is mainly expressed in several versions:

I bought too expensive

sold too cheap

I did not buy a paper that rose sharply.

Of course, other forms of this syndrome are possible (psychological phenomena are always extremely multifaceted), but the main idea, I suppose is clear.

If we look at the options for how the syndrome of the missed benefits in the securities market, we can make a couple of conclusions about the nature of this phenomenon. And these findings will help us fight this phenomenon.

So.

We look. What do we see?

Let’s start with the experimental option «

Warren himself Buffett Head noted on this issue — «

Well, we look further.

Man is experiencing that he

If you basically bought the paper cheaper than sold — that is, I made a profitable deal, then there is nothing more stupid than to radiate myself with a missed benefit while paper, after your sale weighed in price.

«Never error fix profits»

I am often asked in a personal and in the comments about my passed deals — I do not worry that the stocks sold earlier rose higher than the cost at the time of sale. Guys, of course, no.

«Never a mistake to fix profits» is not just words. This is the wisdom of previous generations. It needs to be understood and accept. If this wisdom is not taken — you beat your psyche in a dead end. After all, you will worry even after profitable transactions, and then what will you do after unprofitable ???

If I decide to get out of the position on any paper — it means that I have my thoughts about this. So, in my opinion — the action has exhausted its growth potential. Can I be mistaken about the prospects for a specific issuer? Well, of course. And not just «mistake a little» — and I can be wrong very much. In principle, I do not pretend to the role of the Great Exchange «Guru» — therefore I show all my movements and reflections in the market. If I wanted to embellish the picture — then, for example, the losses on the sale of bonds simply would not write.

But after all, the need to be infallible is the requirement only when selecting the Pope of Rome. I have more modest goals — just get rich. Therefore, I do not have to be always right — it would be enough for me to always be in profits)) and the proverb that «never error to fix profits» I accept the whole soul «))

And what happens, is going on in the head in people who committed a profitable deal, are still experiencing if the paper after their release from the position continued to grow?

Envy

AND

Looks like — again envy and mania of greatness.

And when the phenomenon stopped carrying a beautiful name — with him and fight it easier, it seems to me.

It immediately became clear — you are not clairvoyant, you will never buy paper at the bottom and do not sell at the peak itself — but there is also good news to get rich this and not required))) So it’s not trying in vain repayments for not perfect entry points and exit. By the way — the exit can not be signed, if the proper shares chose — Buffett advises them all my life own ideally, if I chose it right — as he himself Coca-Cola))

Well, the envy is generally obviously, a bad feeling, there is probably not necessary to explain anything.

Summarizing.

The missed benefit syndrome in the securities market is very similar to the beautiful name for a combination of old good «envy» and «Majiya Maryi». If it is sharpening this obsession, then you will notice that it is not necessary to participate absolutely in all favorable stories (especially since this is not even a great buffette). And it is not necessary to buy stocks at the bottom and sell at the peak itself to successfully multiply your capital. It is quite enough to own the shares of good companies, receive dividends, sometimes when it seems to you that the growth potential of the action is exhausted — it is profitably selling it. And do not worry about missed opportunities. After all, any profitable deal (not necessarily perfect at the most maximum price) brings you to the goal — become