Lesson 23 · Written for kid, teen, and little
Avoiding emotional traps
Why smart people make dumb investing choices.
Your brain is wired to feel fear and excitement — and those feelings trick investors into buying high and selling low. When everyone's hyped, it's tempting to jump in (that's FOMO); when prices drop, it's tempting to panic-sell. The winning move is boring: make a plan and stick to it, even when your gut screams otherwise. 🧠
Words to know
5FOMO
Fear Of Missing Out — the panicky urge to buy something just because everyone else is.
Anchoring
Getting stuck on a number, like refusing to sell because of the price you paid.
Loss aversion
Losses can feel more painful than equal-sized gains feel pleasing. The strength of that feeling varies.
Recency bias
Assuming whatever just happened will keep happening.
Pump-and-dump
A scam where people hype a stock to push the price up, then sell it onto you.
A new meme stock is exploding. Your friends made $500 in a week. The chat group is hyping it nonstop. What do you do?
In the full lesson
- 1Make the call
Vine has 107 lessons like this one, each written three ways so a 7-year-old and a 17-year-old both get a version that fits.
The practice portfolio is open.
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