I was working on a memory task in my software work and liked the datasheet of micron's memory as it was very organized and the chip is powerful. The stock was around 80$. So I picked it up. Sold it after some 20% gains. Did it twice or 3 times. However I withdrew around 3 months ago and the last withdrawal was not profitable. I started investing mid 2022 and set a plan for long term but the 20% gains always pushes me to sell and call it a good year following the (10% annual gain is good) rule. However in the crazy AI era, the bubble vs not bubble is not like any other. The conservative investor should not follow the trends.
In short AI made my principles fail and it is my problem for sure. However to recover my mentality and my resilience I need to create a new portfolio. It should be away from tech. As I do not believe AI will enhance our day to day activities and if it did the value of stocks already took this future value inside its prices. Especially when I hear all companies are buying eachothers' stocks. The only valid stock for me in tech is Micron. However it is also cyclical driven when the AI data centers building phase ends the RAM prices would not be justified as there is no race anymore. I think of AI like the space race between superpowers. The value of stock is heavily impacted by politics and greed which both always hype the prices however the gains are not equal or at least would not be growing (i.e. the risk is very high vs the reward is max another 20% or 50% but very small probability that I do not care of). I am 30 years old now and earned around 1000$ from a weighted average of 2000$ scattered on 2.5 years.
I say that is a good start in general but absolutely not good compared to the AI gains in the last 2.5 years. I did same mistake of Micron with Nvidia too I started when it was 400$ sold it for 600$ then bought 800$ and sold 1000$. I can not stick for a crazy stock for long as I like to grab the gains and then look somewhere else. Yet timing the market long term surely will wipe my gains. So I'll start following the 80% 20% rule, 20 for the trading, 80 for long term investing. What good industries that set for continued growth in next 5-10 years, not financial institutions or consumer like Walmart. I aim for products or services that will improve people lives. I'll then start to look for some innovative companies either in its service/product or its way of doing them in better financial way. This is my first post here and I am really looking forward for people's advice here.