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Why do people monger over crashes and recessions so much when

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Why do people monger over crashes and recessions so much when they are always temporary? Why sit out on hundreds of percent in gains just to short a measly 25-50% gain. Just avoid allocating a bunch of money into bubbles (diversify) and hold. There's literally no reason to worry about a crash unless you are retiring in <10 years.

Any psychologists or sociology fag have an input on why humans are so drawn to making little returns shorting a crash rather than buying and holding?
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it takes a strong will to see all that money disappear so fast
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>>1000756

But it's unrealized. You have to be retarded to think of it as real money.
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>>1000671
a person gains 5 bucks, and it's not too much of a deal for them.

a person loses 5 bucks and all of a sudden that's their money being jacked right out of their pocket.

it's the same reason why people will fall deep in debt on the poker tables and keep riding the crash into the ground.
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>>1000818

Except a more realistic scenario would be a person gains 20 bucks, then freaks out over a 5 bucks that will turn into 30 bucks in 2 years, not riding into the ground. But no that $30 is nothing. Gotta freak out every Sunday evening betting on that $5 drop come anytime now. 'It's habbening!"
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https://en.wikipedia.org/wiki/Loss_aversion
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>>1000816
Incorrect assessment, treat all losses to your liquid worth as complete losses.

Also you sound young. If those losses occur during a time where you need to liquidate then you're pretty much fucked.
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>>1000824
Part of that is the gamble in it.

I've always held the opinion that people on some level don't trust economics because it relies on factors so far outside of an individuals own personal realm of control. What it creates from that is this constant feeling of people waiting for the other shoe to drop.
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>>1000816
>But it's unrealized. You have to be retarded to think of it as real money.
Obviously you're new to the game.

If you have an "unrealized" loss your value has been transferred to another person. Price is what you pay and value is what you get. Value is measured in dollars (in this case). On a mark-to market report you must show it as a loss. Among professionals, you wouldn't be able to go to a manager and say, "It's not a loss until it's realized..." because a professional would then fire you and hire the smart young person wanting to become a professional trader.

If you bought CHK at 10 and now it trades at 4, you have lost 6. But you say, "No I have 10 in CHK! The loss is unrealized!" Then you need a oan. You go to your banker. I want 10 and I have collateral of 10 in CHK. Your banker puts away his tranny porn and looks at the value of CHK on Finviz. Banker sees CHK at 4. Banker says, Fuck you anon! Your shit is worth 4. You're down 6!!! Security!!! Throw the CHK holding asshole out of here!"
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Investing is literally all psychological, basic investing principles & patience. it's like when Warren Buffet was buying Washington Post shares after Nixon had declared war on them for Watergate. The price had crashed from $30 to $15 in a matter of days. Warren said he talked to some people he was buying shares off and they all knew WP was worth $100 per share but still sold.
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>>1000932
You should not put your emergency funds into risky assets.
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>>1001111
If you are into healthy assets and for the long term, there's really nothing to worry about, unless your country turns into a third world shithole.
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>>1001119
Unfff. That's a dream buy.

You always want to be getting into a good investment when others' aversion makes it cheap to do so.
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Crashes happen because institutional traders need to deliver returns, monthly and annual returns. In a national or global crash, whoever losses the less will be the next center of attention. Take Luis Stuhlberg's Verde, which lost only 6.44% in the 2008 crash.
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>>1000671
Because profit is temporary
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>>1000671
>Why do people monger over crashes and recessions so much when they are always temporary?
DONT YOU UNDERSTAND
IT'S THE JEWS
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>>1000863
This. People just hate seeing "losses" even if they are not realized. Look up some info about the disposition effect as well.

+ Think about it. When stocks are doing bad (after a crash) usually the whole economy is doing bad, so individuals are also doing bad economically speaking: their salaries are lower, etc. Because people have some kind of wealth "reference point", they want to stay as close as possible to this point (again this is explained by Prospect Theory and Loss Aversion). The only way for them to get extra cash is to... sell what they have invested in the stock market. OK, selling stocks low is completely dumb, but individuals are dumb. But it "makes sense" that people would rather sell stocks (which are not really tangible) than selling tangible assets like their car to pay the rent: then they would "feel poorer" and their neighbors would also see them poorer.

So, crises are also the time where people need their money the most. That's why they are ready to sell stocks low.
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>>1001126
Those aren't emergency funds. That's retirement. I can't work, and need to pay taxes. but wait the market is crashing and my lifeblood has been cut in half.

All assets are risky. once you understand that you'll improve.

even 30 year US Bonds have risk.
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>>1001186
Everything will recover. If they don't recover, nothing matters anymore because the US will be a wild west again.
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>>1001189
more like the wild wild east. have a look at the japanese economy for the past 25ish years
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>>1000671

>Nikkei 225
>Always temporary
>less than 10 years

Top fucking kek.
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>>1000671
I think it is a general consensus among bears right now that the next recession will be the big one. Great Depression times two or some shit.

The theory being that we really didn't come out of the last recession and we've only seen increased economic activity because the FED prints a fuck ton of money and loans it out at zero percent.

Just my two cents.
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I'll just sit and enjoy the show when the shit hits the fan. Winners = stock owners. Lowers = common people.
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>>1001129
Then buy AAPL right now
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>>1001369
That is shitty analysis. Our next recession will eventually happen, but the chance that it'll be larger than '08 is veeeeery small
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>>1000671
Yeah, silly psychology comes into play.

Don't invest more than you can afford and due to dollar-cost averaging, a rising and falling economy will provider faster gains than a stable one. Crashes and recessions mean cheap equities, and given that the market will recover, that's something people should be welcoming. Buy the dip, mufuggas. Diversify, buy and hold, don't try to time the market. All established strategies.
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>>1000671
Idk senpai
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>>1001450
> Buy the dip, mufuggas.
>buy and hold
>Don't try to time the market
>... All established strategies.
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>>1001439
>implying I'm not already long AAPL
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links and info for a stock trader wannabe?
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>>1000671
>There's literally no reason to worry about a crash unless you are retiring in <10 years.
There's literally a shit ton of people who are about to retire in <10 years.

Also, media loves drama, and a crash would be dramatic.
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Is this board full of people with no business experience giving business advice?

Or is the OP just an exception?
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>>1001485
go through the course on itunes U
Thread posts: 33
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