Each time we face our fear, we gain strength, courage, and confidence in the doing.
Ralph Waldo Emerson
Why I keep losing Money In The Stock Market
When it comes to investing there is no place for emotions; in fact, emotions are useless unless you are in a flight or fight situation. To invest in the market successfully you need to understand that you need to do exactly the opposite of what these useless emotions are prompting you to do.
Riches come to those who seek them and do not chase it. To those who chase it, rags are the only reward. The oyster can be your world or you can be an oyster in the world. One needs to get a firm grip on their emotions if one wishes to be successful in the markets. There is simply no place for any extreme deviation from the norm when it comes to investing and euphoria and panic are extreme deviations from the norm. Losing in the markets can become a thing of the past, but the first step is to change the way you perceive the markets. If you have lost money in the market, you should pose this question. Why I keep losing money in the stock market?
You Keep Losing Money because mass media manipulates the Data
There is so much negativity going on at war, huge budget deficits, inflation, the pundits talking about an equity and commodity meltdown and a housing market waiting to collapse, etc. Hence we decided that now would be nice to come out with some random musings that at the very least will produce a chuckle if not some laughter from our readers.
Remove the thought and there is no thinker, the thought makes the thinker.
Why is it that we say I am going to do this from the bottom of my heart, why not from the top of our hearts? Could it be that we don’t want to give it all we have got so we do it from the bottom? Mass Media manipulates everything: Resist & Follow The Trend
Why Do I keep losing Money In The Stock Market?
However, in terms of financial well-being, one needs to understand these deadly forces. These three forces we speak of are Fear, Euphoria and indecisiveness, etc. The idea here is to fear what the masses do not fear and embrace what they fear. If you want to become a better investor, a better market timer, then you owe it to yourself to understand this very simple yet incredibly powerful force that controls and directs every human action.
These instinctual forces might be very useful in terms of delivering us to safety when it comes to any threat to our physical well-being. However, in terms of financial well-being, these forces are completely useless and downright deadly. The forces we speak of are Fear, Euphoria or indecisiveness, etc. The idea here is to fear what the masses do not fear and embrace what they fear. If you want to become a better investor, a better market timer, then you owe it to yourself to understand this very simple yet incredibly powerful force that controls and directs every human action. Mass Media manipulates everything: Resist & Follow The Trend
Conclusion
One of the key factors contributing to the crowd’s losses in the stock market is the influence of emotions. A growing body of research in behavioural finance has shown that emotions, such as fear and greed, can have a significant impact on investment decisions. For example, when the market drops, fear and panic can lead investors to sell their holdings and lock in their losses. Conversely, when the market rises, greed can drive investors to pour money into the market, often buying at the top and missing out on future gains. This emotional cycle can result in poor investment decisions and has been shown to be one of the key reasons why the crowd often loses in the stock market.
The masses never learn, they will always be used as cannon fodder as that is the role they secretly wish for. Remember the saying “misery loves company, but stupidity simply adores it”. The masses always dump when they should be buying and buy when they should be selling. In this world, it’s not what you know that can hurt you, it’s what you think you know that can hurt you the most.
The two most powerful warriors are patience and time.
Leo Nikolaevich Tolstoy Quotes
Other Articles of Interest
Negative Thinking: How It Influences The Masses (Oct 29)
Leading Economic Indicators: Finally in Syn With The Stock Market? (Oct 28)
Dow Stock Market Outlook: Time To Dance or Collapse (Oct 25)
What Is Fiat Money: USD Is Prime Example Of Fiat (Oct 13)
Yield Curve Fears As Treasury Yield Curve Inverts (Oct 12)
Current Stock Market Trends: Embrace Strong Deviations (Oct 2)
Market Insights: October Stock Market Crash Update (Oct 1)
BTC Update: Will Bitcoin Continue Trending Higher (Sept 17)
Stock Market Forecast For Next 3 months: Up Or Down? (Sept 16)
Stock Market Crash Date: If Only The Experts Knew When (Aug 26)
Nickel Has Put In A long Term Bottom; What’s Next? (July 31)
AMD vs Intel: Who Will Dominate the Landscape going forward (June 28)
So obviously the best time to have bought was before it really did anything, wait for the 2nd high, then sell high? Is that a general strategy? Does this graph show an average for how stocks seem to go? I’m a total newb, which is why I ask.