I find myself in a somewhat odd investment psychology pitfall or trap that is the opportunity cost or FOMO of potential gains, but not losses.
I have had paper losses in my investments of up to five digits are some points, which doesn't bother me emotionally or psychologically at all. However, when it comes to losing out to potential gains, it hits me with almost crippling anxiety and frustration.
For example,
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selling off a stock after it had made a profit, to see that the price continues to appreciate shortly after,
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taking a stop loss to see that the stock makes a recovery in the very near term (immediate to say 2 weeks out),
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considering and hesitating on buying a stock, to see that it has shot up before I could come to an investment decision whether to buy.
I think what I find strange about this psychology is that I am mentally able to handle paper losses but not the ability to just shake off gains that 'could have been', even though I hadn't actually made any losses or even made smaller gains than what it potentially got to in the near future.
I guess by writing it down, I am trying to verbalise my thoughts and emotions to make sense of it, deal with it, hopefully overcome it, and would like hear from others what goes through their minds when they are doing investments.
Do you experience any investing psychology or pitfalls yourself?
Anyone else been in a similar mental state as I am, and how did you overcome it if you did?
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