FOMO

Did you know that a staggering number of overhyped stocks lose up to 70% of their value within a year of reaching their peak? The allure of these stocks often captivates both novice and experienced investors, promising extraordinary returns. But what exactly are overhyped stocks?

Are you making objective decisions in your trading, or are you unknowingly falling into the trap of only seeing what you want to see? Confirmation bias in trading is a subtle yet powerful cognitive bias that affects many traders, often without them realizing it. This psychological phenomenon refers to the tendency to seek out and prioritize information that confirms your pre-existing beliefs while disregarding anything that contradicts them.

Did you know that approximately 70% of traders admit to making decisions influenced by emotional factors rather than sound analysis? This statistic highlights the crucial role of trading psychology in the financial markets, particularly when it comes to understanding psychological price points. These levels are not just arbitrary numbers; they represent significant thresholds in traders' minds that can dictate market behavior.

Stock trading is a popular way to grow wealth, but it requires a solid understanding of market dynamics and disciplined decision-making. At its core, stock trading involves buying and selling shares with the goal of making a profit. While the concept is simple, executing trades effectively can be challenging, especially for beginners. One of the most common and costly mistakes in stock trading is buying high and selling low.