You surely know the following saying: “Neighboring grass always looks greener.” This proverb illustrates that what we don’t have always looks more attractive. This also happens when we invest illegally. Often the shares that we do not have look more attractive because they are rising high, while the shares we own are actually moving in the opposite direction. This phenomenon can be explained psychologically and its impact on investment can be detrimental. Why? Check out this complete article. Besides that, you can go to https://magodomercado.com/aprenda-como-investir-na-bolsa-de-valores-comecando-do-zero/ if you want to know more about stock investment.
WHY ARE OTHER STOCKS ALWAYS LOOK MORE GREEN (BETTER, FRESHER)?
There are a lot of stocks on the market and generally never move together. Sometimes one sector goes up, while another sector goes down. That’s why we see a greater opportunity for other green stocks. When we buy shares, in our hearts we feel we are entitled to profit. When our shares go down and other stocks go up, we feel our rights are taken away. Besides, psychologically, we are never satisfied with the profits that have been obtained. Even though we have previously earned profits from stock, but what we see in the present. This is called the recency effect, which is the human tendency to prioritize the current conditions.
PSYCHOLOGICAL IMPACT OF THIS
When we see other stocks rise higher than the shares we have, we will feel regret. Why not buy the stock. Then there is envy which is one of the deadliest sins in trading. Investors will usually sell their shares and buy shares that are currently rising high. Finally, it even goes down and you bite your finger.
When the bearish stock market is usually almost all shares go down, but there are some stocks that actually go up high and even crazy, especially fried foods. Therefore the psychological impact of other stocks that look greener feels much stronger when the stock market is bearish. Therefore many investors are trapped, deviating from their original long-term investment goals. Should not sell, instead sell. Should not buy fried foods, instead buy lots of fried food stocks that are fluctuating and high risk