As the Nasdaq and other major market indexes soar, artificial intelligence powerhouses like Alphabet (GOOGL), Amazon.com (AMZN), Apple (AAPL) and Nvidia (NVDA) trade at or near their all-time highs, The latest How To Invest newsletter discusses how to handle the current environment with a look at how to trade this power trend while investors also wonder how long it will last.
Recent action puts two concepts into focus: FOMO (fear of missing out) and FOMU (fear of messing up). To keep both emotions in check, use a proven investing routine. It helps investors stay both profitable and protected with guidelines for how to buy stocks and when to sell.
As IBD Senior Market Strategist and IBD Live panelist Mike Webster wrote in an Investor's Corner article, "Sir Isaac Newton would be a huge fan of the IBD Market School's Power Trend. A market in motion tends to stay in motion. Power trends help to get you in and to keep you in when the stock market is in an unusually strong uptrend."
Of course, there's a flip side. While investors take advantage of the market's rise, they also need to know when to lock in profits.
When the stock market keeps notching new highs, investors should avoid FOMO by resisting the temptation to blindly chase highfliers like Nvidia, Apple and Alphabet. Instead of just jumping in at any point, use stock charts to pinpoint optimal buy points to start a new position or add to an existing one.
Recent action puts two concepts into focus: FOMO (fear of missing out) and FOMU (fear of messing up). To keep both emotions in check, use a proven investing routine. It helps investors stay both profitable and protected with guidelines for how to buy stocks and when to sell.
As IBD Senior Market Strategist and IBD Live panelist Mike Webster wrote in an Investor's Corner article, "Sir Isaac Newton would be a huge fan of the IBD Market School's Power Trend. A market in motion tends to stay in motion. Power trends help to get you in and to keep you in when the stock market is in an unusually strong uptrend."
Of course, there's a flip side. While investors take advantage of the market's rise, they also need to know when to lock in profits.
When the stock market keeps notching new highs, investors should avoid FOMO by resisting the temptation to blindly chase highfliers like Nvidia, Apple and Alphabet. Instead of just jumping in at any point, use stock charts to pinpoint optimal buy points to start a new position or add to an existing one.
4 days ago
