I’m having a serious case of overconfidence/ the Dunning Kruger effect. I’m normally very sensible and have only ever invested in ETFs. However, now I’ve got it in my head that I could impulsively sink all my money into a few speccy healthcare stocks like 4DX and IMR and potentially double my money.
The logical part of my brain says that there are probably lots of risks here that I’m not considering. The impulsive, greedy part of my brain says that as long as I buy once I can see the stock start to recover after a dip, and have a stop loss in place so I can’t lose too much if it crashes, it seems fairly safe? I barely know anything about these companies except that they have no competitors, seem to have good products protected by patents, and it seems hard to imagine how they won’t eventually do well.
Can someone please point out the flaws in my logic here? I’m sure I’m being very reckless and overconfident, but I can’t seem to talk myself out of it. Horror stories of similar mistakes people have made would be welcome.