Chasing the upside, ignoring the downside
Many investors were left dazzled by the recent big gains chalked up by technology darling Nvidia (NASDAQ: NVDA). As of 19 June, shares of the GPU manufacturer were up 215% over the past year and have shot up a whopping 34 times in the last five years. With these heady gains, it’s easy to let your guard down and chase what seems to be a sure thing. My point here is not to opine on the direction of Nvidia’s share price....I recently took the plunge and participated in the OCBC Cycle Singapore 20 km event for the first time.
Before the event, I took time to check that my helmet was secure, brakes were functional, and that my tyres were sufficiently pumped.
In short, to ensure a smooth journey, I was minimising anything that could go wrong during the cycle.
As investors, we need to do the same for any investment that we make.
