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Investing Guide - Battling The Fear Of Missing Out When Investing In Technology Stocks

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October 26th, 2021 21:24

Fear of missing out: Stock market

Before we dive deep into the fear of missing out when investing in technology stocks, let us first determine what exactly are technology stocks. 

Tech or technology stocks are simply the shares in the technology companies, such as Google, Apple, and Microsoft. It is to be noted that tech companies include Information Technology (IT), telecommunications, hardware, software, semiconductors, computers, industrial electronic equipment, consumer electronics, and other similar services. Therefore, this industry is massive and ever-growing. 

Tech has been the future for a very long time and with the number of companies growing in the market, you can feel a little lost. To battle the fear of missing out (or FOMO) when investing in technology stocks, we have listed some tips below that could help you in this regard.

Pick a strategy

For any smart investor, the work starts with having a reliable strategy. In the 21st-century bull market, tech stocks have been among the front-liners. However, it will be inadvisable to jump on the bandwagon without preparing a game plan or a strategy. It is smarter to invest in one good company than investing in multiple average companies.

So, you must first prepare your game plan, do your research diligently, and then decide to make an investment instead of putting your money on a random stock simply on the basis of speculation and the fear of missing out.

Be careful of your advisors

If you are a newbie to the tech stock market and do not have a very good idea about technology and the industry, you may turn to your friends for advice. However, do not let peer pressure and the fear of missing out force you into deciding the companies you should invest in.

Moreover, if you choose to hire the services of a financial advisor, it is important to do your due diligence. There are some advisors who claim to have great knowledge about the market but may end up costing you your investments. Therefore, you should ensure to research your advisors well and choose the one that suits your needs and budget best.

Do not dwell on what-ifs

The biggest problem with the fear of missing out in the field of investments is if you dwell on the what-ifs. What if I did not sell that stock at that point and held onto it for longer? What if I did not invest in that company or what if I did? In the game of investment, there is no room for such what-ifs

Firstly, you have to understand that you possibly cannot invest in every single probable opportunity. To calculate your best chances of getting the highest possible return, you have to consult with experts in the field, study the market, and, most importantly, be aware of what you are investing in. 

Make long-term investments

As the old saying goes, time in the market is always better than timing the market. If you decide to invest in a company that you see any potential in, it would give you a higher yield in the long-term than simply trying to jump ship at every rise and fall in the stock market. 

Thinking long-term would mean that you have the time to gain knowledge and expertise in the area you are investing in. It also makes your investments stable and reliable. Making long-term investments would also reduce the chance of you wanting to invest elsewhere and keep your fear of missing out in check.

Broaden your horizon

The technology stock market has the biggest challenge of being more prone to risks than the other avenues. This makes investing in the FAANG stocks (Facebook, Amazon, Apple, Netflix, and Google) the safest bet. In fact, you would not have the fear of missing out on social media companies’ stocks. Therefore, keeping some options available for you to make an investment is essential.

You do not necessarily have to stick to investing in IT services and can even consider investing in tech companies that work towards developing hardware, computers, and technology. 

Conclusion

When investing, it is always important to check the workings and the past performances of the company of your interest. Do not let your emotions get the best of you and always do your due diligence especially when investing in an avenue such as technology. Following these things and more can help you battle the fear of missing out when investing in technology stocks.

Frequently asked questions

1. What are tech stocks?

  • Tech stocks refer to any stock that is involved with the technology sector. It can range from software providers to semiconductor producers.

2. What is the fear of missing out?

  • It is a feeling or perception that others are having a better life or experience than oneself. The fear of missing out in the stock market is essentially the perception that others have better stock investments than oneself.

3. What are the 5 biggest tech stocks?

  • The five biggest tech stocks are that of Facebook, Apple, Amazon, Netflix, and Google (FAANG).

4. Why should one invest in tech stocks?

  • Companies operating in the technology industry can create disruptive products and services that can give birth to new market and revenue opportunities. Therefore, investing in tech stocks could cause long-term upside hot trends.

5. Are tech stocks high risk?

  • Tech stocks are highly volatile. While there are some companies that have reached a security level, most tech companies in the market have stocks that can potentially be high-risk.  




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