LogFAQs > #965007792

Lopen posted...

Current Stock Price should have basically no relevance to what you think the stock price will be. The timeline should be in your head, and the justifiable stock price at that time should be in your head. The price is just psychology to trick you into selling if the news hasn't warranted the drop.

This doesn't feel right. I get what you're saying, but the current price is an aggregation of the information available out there - including marketwide factors that don't just apply to the particular stock you're looking at. The current price is well correlated with future price in that it's hard to find any set of metrics that is a better predictor of future price than current price. Now, of course that is the whole game, but the way you're phrasing it, it sounds like the game is easy and it isn't easy to generate returns better than an index fund.

The lesson to learn with Zoom is having a moment of reflection and considering why you thought that higher stock price was warranted to begin with. Is that still the case? If it's not, and you're not selling and are averaging down, you're not learning but are instead in denial. It's the opposite of learning.

Obviously. If I didn't think that I would have just sold it.