As stocks like Nvidia, Meta Platforms and Uber Technologies continue to fly, FOMO — fear of missing out — may kick in for some investors. But they should also consider FOMU — fear of messing up — when deciding how to handle these big movers.
As the bull market uptrend remains intact, Nvidia, Meta and Uber join eight other top growth stocks on IBD Leaderboard. Others making this list include ServiceNow, ELF Beauty and Arm Holdings.
Plus, three stocks — Cava Group, On Holding and DraftKings — make the IBD Leaderboard watchlist.
Investors who captured some or all of those gains did not miss out. But now the fear of messing up by selling too soon or selling too late starts to kick in.
IBD Leaderboard Gains In Nvidia Stock, Meta, Uber, More
Nvidia joined the IBD Leaderboard list on Feb. 23 of last year. As of the market close on Feb. 26, shares of Nvidia stock gained nearly 235%. Joining on March 14 of last year, Meta has gained over 150%.
In a sign of impressive resilience in the face of pressure in the Nasdaq, Nvidia managed to add to its gains on Monday and Tuesday in good volume. Meta dipped slightly in light trade but continues to tease the 500 mark.
These Magnificent Seven stocks are not alone among IBD Leaderboard companies showcasing nice runs.
Arm stock, a 2023 IPO, rose nearly 123% from its Leaderboard debut on Dec. 8 through Feb. 26. Investors drove shares of Uber stock 58% higher until that date after joining the list on Nov. 7. This week, Uber remains right around the 80 mark, while Arm Holding has slipped but in below-average volume.
For readers not familiar with IBD Leaderboard, it's a list that's actively managed by a team of IBD market experts. The team monitors and highlights any potential add-on buy opportunities, as well as sell signals or signs of trouble.
When To Sell Stocks To Safeguard Profits
The FOMO emotion is real. If you missed the chance to get in early on breakout stocks like Nvidia, Meta, Uber, Arm and others, it can be tempting to jump in after the train has left the station. But sticking with the train analogy, it's much safer to get on board at the next stop (i.e., a pullback or other proper entry) rather than try to catch a speeding locomotive.
For investors that did buy at the right time and have ridden those big gains, now the fear-of-messing-up psychology kicks in. No one wants to see a nice gain disappear or, even worse, turn into a loss. But what if the stock keeps going up? In other words, FOMO and FOMU continue to play on investors' psyches.
That's why investors need to have sound rules for when to sell stocks to lock in profits on the way up, as well as prevent excessive damage from any sharp reversals or roundtrips back into negative territory.
To help avoid such pain and frustration — as well as set yourself to hold and add to gains — study the eight "secrets" of selling. Nvidia, Meta, Uber and the other IBD Leaderboard stocks offer timely examples of how investors can use these rules to keep worries of FOMO and FOMU in check.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
