Freetraders’ most popular buys this week 🗓

Yeah, I think it’s primarily traders/speculator stock now: buy for 4p sell for 5p, rinse and repeat.

Good shout. The narrative around this stock reminds me of the ‘7 Deadly Sins of Investing’ cited in the The Psychology of Investing blog:

humans are much more driven by ego and the narratives we write for ourselves than dispassionate calculation.

Stubbornness :expressionless:

The worst combination of behaviours is rashly cutting your wins and then stubbornly running your losses. It’s obviously self-destructive but very psychologically tempting. Many people hate losing more than they enjoy winning and subsequently they’ll do anything to put off a loss.

There are a whole bunch of tricks and biases people use to avoid changing their minds and recognising the loss, from ignoring the facts to upping their risk to cancel out the deficit.

Phrases like, “It’s only a loss if you sell” are technically true but also technically massively unhelpful.

Being steadfast is actually a good thing in investing — you shouldn’t necessarily switch your strategy just because things don’t immediately play out as expected. But when the facts of an investment change, don’t be afraid to change your mind.