And I was raised by one.
Years back I remember when ATT or GE or Microsoft would drop $0.50 or a dollar. My dad would immediately call his broker and sell everything thinking the world was coming to an end.
In a few days later the stock would be back up and he would hate himself for selling everything.
Mom on the other hand who had her own portfolio would buy stocks and hold them for 20, 30, or 40 years. She always taught me that slow and steady was the best way to invest but she could never convince my father to do the same.
Dad was a great man and my only hero. I just wish the market wouldn't have drove him so nuts.
What makes people freak out and trigger them to sell during the slightest sign of a drop when history tells you that most stocks will always come back up and grow?
I don't understand panic sellers
byu/WhenToBuyHome ininvesting
Posted by WhenToBuyHome
13 Comments
Your mom was an investor, and your dad was a speculator.
You really don’t understand why people would panic when they are losing money?
We are not teaching your bot, even if it has a folksy homespun backstory
Over investment maybe? I personally dont get it either. Its not like its the same thing as your bank failing or something. Also watching the prices too often can cause too much anxiety.
What makes people freak out? They either have put too much money in the market, or they do not understand the concept of diversification and long term investing.
I’m about to panic sell some Ethereum if it drops any further
Because when it comes to individual stocks, some stocks never or may not bounce back. Take a look at where Enron ($ENE), Bed Bath & Beyond ($BBBY), Beyond Meat ($BYND), Lucent Technologies ($LU), Tilray Brands ($TLRY), etc. ended up. That’s why many have pivoted to a buy and forget of ETFs as your investment isn’t all in one basket.
Why do campers run when a bear attacks? Fear or greed — one of those.
Years back. A dollar could have been huge in terms of movement in a single day. Depends on what you invest in and what triggers the panic. Enron type situations are good reasons to sell, but not just a relatively small drop because people were down on it, not good. But that is why invented mutual funds and ETFs.
Panicans.
Think of people who are on margin or fund managers who leverage the balance sheet.
Keyword there is “most” of course there’s Enron, Lehman Bros, GM, etc.
Honestly, I feel like people on reddit panic sell their winners more than their losers.
“It went up, what do I do?!?!”
“Sell half!” “Get your initial investment out!”
Someone should go through posts and see what the most posts really are.