[Summary]
SNS investment psychology is a psychology in which people are emotionally moved by SNS information.
What is more likely to fail when it comes to social media investment psychology is not the lack of knowledge itself, but the fact that you end up justifying your hasty decisions afterwards.
In actual investment, we first start by doubting the poster's position and time horizon. However, we cannot overlook the fact that it is easy to misinterpret the amount of diffusion as reliability.
In this article, we will organize SNS investment psychology not as "knowledge" but as steps to check before buying or selling. Don't rush to conclusions, read according to your financial amount and time horizon.
What to differentiate based on SNS investment psychology
When looking at SNS investment psychology, first determine what you want to judge. The information you need will change depending on whether you want to know the meaning, confirm before buying or selling, or review your current holdings.
Especially for beginners in investing, the easier the words are, the more they tend to take them as a conclusion. SNS investment psychology is not the only material used to make decisions. If you want to check it, it is more realistic to look at it in conjunction with fund management, holding period, and opposing materials.
Situations where you are likely to fail due to SNS investment psychology
If we look at SNS investment psychology as a pattern of failure, we first need to make narrow assumptions. It is important not to mix up whether you are talking about the market as a whole, individual stocks, NISA or long-term funds.
Checking the following points will make things a lot easier.
| Axis to check | What to see in terms of SNS investment psychology |
|---|---|
| purpose | What do you use to judge? |
| Time axis | Which is closer to short-term trading, long-term holding, or NISA? |
| basis | Which one is more important: price, business performance, interest rates, exchange rates, or psychology? |
| risk | When things go the other way, where should you look again? |
| action | Will it lead to buying, selling, or doing nothing? |
Points that can easily cause trouble in making decisions
It's not only when you lack knowledge that you stumble when it comes to social media investment psychology. In fact, there are situations where we interpret something conveniently because we know a little bit about it.
- Don't make a buy/sell decision the moment you look at SNS investment psychology
- Do not mix the time frame that suits your social media investment psychology with your own holding period.
- Don't increase your position to recoup your losses
- Don't make a decision just based on SNS or rankings.
The important thing here is not to settle on a single correct answer based solely on SNS investment psychology. In investment, the meaning of the same material changes depending on the market, holding period, and amount of funds. When in doubt, prioritize confirmation over conclusion.
Checklist before buying and selling
Before using SNS investment psychology as a basis for making an actual decision, check at least these five things.
- Can you explain in one sentence the purpose of looking at SNS investment psychology?
- Have you confirmed one or more countermeasures or failure conditions?
- Are you investing your living funds or money that will be used soon?
- Have you decided in advance the criteria for cutting losses, taking profits, and continuing to hold stocks?
- Are you making judgments based only on social media or short headlines?
Checklists are simple, but they prevent you from adding reasons after making a decision. The purpose of checking SNS investment psychology is not to act quickly, but to reduce unnecessary judgment errors.
Summary
SNS investment psychology is a material for organizing investment decisions. Even if you read it as a failure pattern, treating it as a standalone buy/sell signal will lead to poor judgment.
The points to keep in mind are as follows.
- Check the psychology of SNS investment Decide the purpose first
- Do not mix time axis and amount of funds
- Check not only good materials but also negative materials
- When using NISA and long-term funds, consider how to handle losses
- When in doubt, reduce your position or postpone it.
The more knowledge you have, the safer it seems, but in the market it can become dangerous if you use it incorrectly. It is realistic to treat SNS investment psychology as a tool to pause before buying or selling, rather than a word that forces you to make a hasty decision.