How To Stop Chasing Losses
I started trading around mid January. I’d been looking at ‘investing’ very loosely over the last two decades but never had enough spare money to jump in. I do now and thus decided I need a pension fund that gives me more than 0.0005% interest per year.
Chasing losses leads the gambler to gamble with more than he or she can afford to lose, and often to borrowing money in an effort to get even. Many gamblers may chase for short periods, until they learn from bitter experience that this is counter-productive. Pathological gambling is defined by the long-term pre-occupation with chasing losses. Focus on what is essential and concentrate on your goal. If your goal is to stop gambling for good, COMMIT!! Remember commitment is CHOICE that we have to keep doing again and again and again. Make that choice to stop. Hope lies eternal. As long as we hope to move forward and mend our ways, we will never get lost.
How Do I Stop Chasing Losses
Fast forward to early March.
I own somewhere between 5-250 shares in a shit ton of stocks. Random stocks. Think around 50 different companies. There’s only a few that I’ve (lazily) researched and actually believe in. Yes this was a mistake. I should have done research first and then bought, but I’m more of a jump in first and then learn how to swim person. I don’t mind the monetary losses. I can make those back up if I’m patient. And I have nothing but time (I’m not selling any of my stocks until they turn green again).
So far I’ve spent around 15k.
The problem is this: each week I hear about a new stock that is ‘hot’ (not meme stocks, I’m careful around those, but stocks that are often talked about, such as OSTK, EDP, OXY…). I immediately want to buy it. This’ll lead to more shares in more companies I have to keep track of… which I really don’t want, but those stocks, at the current low prices, are so, so enticing. I want to buy them all and see what grows!
The problem then is twofold:
- I’ve bought a lot of random stocks that I’d rather not have (but don’t want to sell at a loss). A lot of my money is tied up in them now because of that.
- I want to buy stocks that I actually believe have potential… but I’m out of spend-able money at this point! I’ve already used my credit card once and I’m kind of scared where this is going because credit card using is not good. I shouldn’t be investing borrowed money.
So reddit, do you have any tips on how to stop chasing the next SHINY stock? I keep jumping around, some of my stock purchases were plain stupid, a lot of stocks I think have actual value are currently out of my reach to buy unless I stretch my credit card. Theoretically, I can do that because I’ll be getting a pretty high bonus in two weeks (salary payout date), but it’s still a shitty plan.
How To Stop Chasing Losses
EDIT to add current action plan:
Wait until bullshit stocks go up to where I bought them. Sell. Buy valuable stocks instead. It’s no fun, but it has to be done!
Any advice welcome! Thank you in advance.
submitted by /u/Calathe
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