Do investors need to separate their emotions from their portfolios?
“It’s a bad idea to turn your portfolio into a religion, Jim Cramer warned his Mad Money viewers Wednesday, as he sounded off against the “true believers” that refuse to sell their favorite assets at any price,” wrote TheStreet’s Scott Rutt in his Mad Money recap. “This “messianic” trading began earlier this year when the Reddit traders piled into GameStop (GME) – Get Report, vaulting the stock higher and higher until finally, the hedge fund short sellers were forced to relent. These same traders hoped to catch lightning in a bottle a second time with AMC Entertainment (AMC) – Get Report and a handful of other stocks. When those efforts failed, traders then moved to other asset classes like NFTs and cryptocurrencies, ending with today’s massive debut of Coinbase Global (COIN) – Get Report.”
“Stocks are only pieces of paper, they shouldn’t be worshipped, Cramer concluded. You can’t just focus on the stocks you love and ignore everything else around you. Investing takes discipline, and that means taking profits and avoiding the urge to be greedy,” he continued.
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