RE: US Stock Market Correction and BTC
Nemo,
You said, "it took only 10 days to wipe the gains."
The reality is this........
The fear of loss is greater than the fear of gain.
No one fears a market going up, it can only lead to irrational exuberance.
Yet, when it goes to such heights as we have seen lately, fear kicks
in. The shoulda, coulda, woulda, but didn't mindset.
I explain to some people, it's like a boiling tea kettle, eventually it's got to let out some steam! :)
Second, you never hear about people going to parties and bragging about the losses they took on any sort of investment. No, they only brag about their gains. The bigger the better. Imagine though, you went bragging about how much your investments went up and at the next party you went to, they asked you how your investments are. What? You didn't sell out? The best thing to do is be humble, and count your money. ;)
In closing, I read an article by Rick Newman yesterday.
He posed the question, "When was the last time you saw the market behave like this?"
He responded to his own question, "Not long ago at all. Just two years ago, in February 2016, stocks bottomed out around 14% lower than the peak reached in May of 2015. "
I thought that was interesting, especially since it's February.
Thank you for these excellent comments. I am glad to hear my own thoughts echoed in your voice. I have been trading currencies and futures for the last 20 years. It is the same story every time. I remember vividly the day Lehman collapsed. By some absolute luck I was holding some IBM puts, but in my small trading group I didn’t have the guts to say it. We all lost money, a lot of money and we all shared losses and ordered double the scotch we ordered in the evening. So my thoughts are this, people who brag about their profit are amateurs. Market is very humbling, it provides instant gratification and instant negative feedback at equal weight. To me it has always been people first then money (to pun intended)