So, a week later I am back and have lost money on Gamestop stock. It is not the end of the world however. The thing about the stock market is that there is always a shit stock that’s on it’s way to the top, and with these smaller opportunities you can build yourself back up to any position. However, you have to scale back your ambition some.
While there is always the potential to be on the ground floor of a rise that could 100x your initial investment, that would be a similar situation as winning the lottery almost. The best way to rebuild after a big loss is to take 10-30% profits on one play, then move to the next. Sometimes splitting your money between two or three plays to see which ones pan out, and sometimes going all in for that almost guaranteed 5% spike to your net-worth before pulling out again to find something else.
Never FOMO if you can help it, you could always be the one who buys back in at the top while everybody else gets out of the trade. Never trade on emotion if a company is certainly flawed. And don’t be afraid to do your own research into smaller companies that may or may not be the next big thing. Diamond hands are good, but a diamond wallet would be better no?