Human nature is a powerful force, but it deludes us to believe our gut instincts. When the price of an asset falls to a level where an investor or trader believes is a logical, reasonable, and rational low, they perceive the price as a bargain.
After an initial purchase, if the price continues to fall, our emotions cause a dangerous impulse. The little voice in our heads (ego) declares that the market is wrong. But it's never wrong.
The quest to buy the low in any market has everything to do with ego and little to do with making a profit.
15
56 reads
CURATED FROM
IDEAS CURATED BY
Passionate about crypto Trading since 2015 M.Sc. Chemical engineering Soon Ph.D. Computer science
The idea is part of this collection:
Learn more about psychology with this collection
Identifying and eliminating unnecessary expenses
How to negotiate better deals
Understanding the importance of saving
Related collections
Similar ideas to Buying The Low
The investor believes that the market price is judged based on the established standards of value, while the speculator bases all their judgment on market price.
To distinguish whether you are the intelligent investor or a speculator, ask yourself whether or not you would invest in a stock...
This is a principle of investing wherein an investor purchases securities only when their market price is significantly below their intrinsic value.
The formula to determine the intrinsic value of something is:
Margin of Safety = Market Cap / Deep Value Barg...
Many inverse ETFs utilize daily futures contracts to produce their returns. A futures contract is a contract to buy or sell an asset or security at a set time and price. Futures allow investors to make a bet on the direction o...
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates