What is Anchoring? a Behavioral Finance phenomenonIf you have an investment that has experienced a decrease in value significantly, and you decided to keep and sell at your entry price, please read this article it may help you to make a better decision.
Before we go to the main educational point, keep in mind those who bought tech stocks at the market peak in 2000-2001, waited 15 years to get even..!
Educational Point:
Anchoring
The concept is part of the field of behavioral finance, which studies how emotions and other extraneous factors influence economic choices.
In the context of investing, one consequence of anchoring is that market participants with an anchoring bias tend to hold investments that have lost value because they have anchored their fair value estimate to the original price rather than to fundamentals. As a result, market participants assume a greater risk by holding the investment in the hope the security will return to its purchase price. Market participants are often aware that their anchor is imperfect and attempt to make adjustments to reflect subsequent information and analysis. However, these adjustments often produce outcomes that reflect the bias of the original anchors.
Examples:
1-DASH:
2-FB:
3-CVNA:
4-CRWD:
5- ZM:
6- COIN:
7-SPOT:
8- NFLX:
9-PTON:
10- RNG:
these are just some examples of stocks that lost more than half of their value in the past few months or weeks..!
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
Reference article:
www.investopedia.com
Spot
BNBUSDTHello Crypto Lovers,
Mars Signals team wishes you high profits.
We are in the daily time frame. The price has broken the R1 resistance. We expect it to completely break the R1 resistance, stabilize above it, and move toward the R2 resistance. S1 and S2 are the support areas but it is most likely for the price to go up and not down.
Warning: This is just a suggestion and we do not guarantee profits. We advise you to analyze the chart before opening any positions.
Wish you luck
Beware False Breakouts! How To Spot Them...Investors should use basic Technical Analysis for powerful decision making. I see it as a challenge to demonstrate how useful knowledge of one simple pattern can be to identify price reversals. Recognizing this pattern and acting on it will save much money and headache!
Both traders and investors need to be on guard for false breakout reversals. Seeing this pattern in action can provide an excellent profit target, entry point, or prevent major drawdown!
In this video I look at examples in the Silver ETF AMEX:SLV , Spotify stock NYSE:SPOT , and Forex Euro/Dollar pair FX:EURUSD for false breakouts and what follows.
I am excited to make this video for my viewers and for Best of Us Investing!
SPOT Spotify Price Target after H&S and Joe Rogan controversyToday you will probably have the chance to buy SPOT at the price of its IPO in 2018.
But the price target, in my opinion, it`s even lower.
Looking at the Head and Shoulders Bearish chart pattern combined with the Joe Rogan controversy that has exposed Spotify’s weaknesses, i would say $126 per share is my buy area.
Looking forward to read your opinion about it.
Spotify (NYSE: $SPOT) Flexing By Bouncing Off 0.786 Fib! 💪Spotify Technology S.A., together with its subsidiaries, provides audio streaming services worldwide. It operates in two segments, Premium and Ad-Supported. The Premium segment offers unlimited online and offline streaming access to its catalog of music and podcasts without commercial breaks to its subscribers. The Ad-Supported segment provides on-demand online access to its catalog of music and unlimited online access to the catalog of podcasts to its subscribers with no subscription fees. The company also offers sales, marketing, contract research and development, and customer support services. As of December 31, 2020, its platform included 345 million monthly active users and 155 million premium subscribers in 93 countries and territories. The company was founded in 2006 and is based in Luxembourg, Luxembourg.
BTC Bottom for today?-Choppy price action most likely after the dump.
-Reasonable probability for some relief.
-Potential for SFP (swing failure pattern)
-Buying spot, observing for reaction. No stop-loss.
-If doesn't develop as expected idea invalid.
-Scalp trade.
Spotify Analysis 14.01.2022Hello Traders,
welcome to this free and educational analysis.
I am going to explain where I think this asset is going to go over the next few days and weeks and where I would look for trading opportunities.
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Thank you for watching and I will see you tomorrow!