Follow Stocks Too Closely You Get Fear-Mo!
Fear-Mo: Emotional traders who get whipsawed from #fear & #fomo by watching the short-term charts.
Stocks continued to push higher yesterday with tech and large caps. The IWM small cap index closed negative, indicating my theory of end-of-year window dressing by large funds and advisors are moving their investor’s money over to the top-performing large caps and driving the market higher.
Believe it or not, after the opening bell today when stocks took a little dip lower, traders freaked out and panicked for a brief moment. This is the problem with people listening to the news, reading opinions from many different sources, and being glued to watching the intraday price action. Traders are jumpy, scared of losing money one day, and then scared of missing out on future gains. It’s been like this for as long as I know, and I don’t see it changing, but it just goes to show a tiny little blip on a chart is a nightmare to trade without a plan or self-discipline.
On another note, we had this comment yesterday, and I wanted to post it here as it’s a common type of question, and everyone can benefit from it.
