The Best Investment Advice; Don’t listen To Experts
Do not listen to self-proclaimed individuals that claim to be experts, for they probably know even less than you. For the record, at the Tactical Investor, we never refer to ourselves as experts, but at most, we will use the term “advanced students”. A student is willing to continue his journey, while experts or masters stands still falsely assuming they know all that there is to know on a given subject. Hence experts and masters are akin to bad students; they do not want to learn anymore. Therefore if you visit popular sites take their data with a jar of salt and a shot of whiskey. In other words, don’t assume they have your best interest at heart.
Emotions are dangerous when it comes to Investing
One needs to understand that one’s emotions are the most dangerous instrument around when it comes to trading. Those that allow their emotions to the talking usually allow their money to do the walking. In other words, if one makes any decision especially a financial decision that is emotionally based, the odds are relatively high that the outcome is going to be far from positive.
Be open-minded and willing to learn new concepts; read some of the books mentioned earlier in the update and look at how individuals reacted during previous market crashes and what made them throw caution to the wind. One can glean a plethora of data by looking at how the masses reacted to the previous end of the world type events. In every instance, you will find the masses always lost, they always bought at the wrong time, and their timing when it came to selling was even worse.
Technical Analysis: A Brief Overview
At the Tactical Investor, we use custom based indicators but the point is not to try to match what we do or others do, but to understand what oversold and overbought entails. Once you understand that concept, then you can play around with the settings, and this is discussed in the first section of the Tactical Investor trading manual.
Additionally, you do not have to use only popular tools such as MACD’s and RSI; you can look for tools that appeal to you. The idea is not to copy what someone else is doing but to use the concept as a basis for creating something that works for you. We have subscribers that don’t like the RSI or MACD’s; they have replaced one or both with other indicators and are quite happy with the result.
Tactical Investor subscribers are entitled to a free trading manual; the whole purpose of this manual is to teach one how to fish and not make one dependent on the trading style of another person. Start slow, and as you practice, concepts that made no sense to you in the past will start to make sense, and from there the journey will speed up.
As far as the Tactical Investor is concerned, nothing is more important than Mass Psychology. If we forced to throw everything out and rely only on one tool, it would mass psychology. Fortunately, we do not have to do that, so we utilise Mass Psychology and technical analysis.
Keep this in mind
One should buy when the masses panic and sell when the masses are euphoric.
Financial Narcissism is something to keep in mind when it comes to investing
With Financial Narcissism, Instead of money being a fraction of the whole, it becomes a primary organizing principle in which monetary assets become the defining element for self-esteem, social status, and community value. From this mindset, the best leader is the one with the biggest bank account, or the ability to move big bank accounts as he or she so pleases. The GPS for getting there isn’t clear, but it is ultimately about me….what I have and who I can impact. All or nothing thinking and feeling prevails: My valuation or devaluation of you is ultimately based on whether you will help me get more money or money related influence.
At Money, Meaning, & Choices Institute, we have been blessed to work with, and learn from, some of America’s entrepreneurial success stories. Women and men who have built successful profit and non-profit enterprises with grit, courage, vision, respect, and integrity. While no two stories are alike, we have been impressed by their ability to combine personal strength, resilience, and smarts with respect, communication, and collaboration with their colleagues and co-workers—not only their inner circle but all who have contributed to the success of their enterprises. Psychology Today
Investment Advice 101; Don’t Trust FInancial experts so easily
When it comes to financial advice as we stated right at the top of this article, take investment advice with a large jar of salt. In other words, don’t trust the investment advice just because it’s coming from a financial advisor. History has illustrated that monkeys with darts are better at selecting stocks than most financial advisors
The article below covers this topic nicely:
If you think the expert financial advice you receive is unbiased then I have a swamp to sell you in Florida.
You can’t understand the advice you’re given until you know how the person is compensated and what inherent biases or beliefs taint that advice. The problem is most people don’t understand the many problems inherent in the financial advice business. They naively trust in experts.
- Expert advice is plagued with conflicts of interest
- The advice is often incomplete or inaccurate
- Expert advice can limit independent thinking
- Experts can be dishonest
- Experts can be self-deceived
- The whole idea of an investment expert is incongruent with the probabilistic nature of investing. Full Story