Stock Investing Mistakes: Fear Should Never Dominate

Stock Investing Mistakes 101: Never Panic

Updated March 2023

Most investors lose money in the Stock Market, because they invest with their emotions. Sol Palha

From the Tulip bubble of the 17th century to the Financial Meltdown of 2008, one theme remains constant: the masses never seem to learn from history. They are quick to embrace risk when profits are abundant yet just as quick to panic and lament their losses when the market inevitably turns. This cycle of greed and fear is the main reason why many investors consistently lose money in the stock market.

It seems that nature has designed the masses to serve as cannon fodder for the market’s ups and downs. Despite the efforts of well-meaning individuals throughout history, the masses remain resistant to change. Those who have attempted to educate or assist the masses have often met with violence and persecution.

Ultimately, the challenge lies in perception. It is impossible to force one’s worldview onto others and vice versa. This is why the Federal Reserve has spent decades attempting to gradually shift the masses’ perception of the market and the economy. But even their efforts have been met with mixed results.

In short, the lesson to be learned from history is clear: those who fail to learn from it are doomed to repeat their mistakes. And as long as human nature remains unchanged, the cycle of market booms and busts will continue unabated.

Stock Investing Mistakes: Common Sense is Uncommon

It can be challenging to discuss the topic of fiat currency and the role of the Federal Reserve with the average person, as these concepts can be complex and often go against mainstream thinking. However, it is crucial to understand the potential dangers of fiat currency and how the Fed’s policies can impact our economy and financial well-being.

Many people may roll their eyes or dismiss these ideas as the ramblings of a conspiracy theorist. Still, it is crucial to consider the potential consequences of an overreliance on fiat currency. As you have rightly pointed out, truth and falsehood are subjective concepts that can depend on one’s perspective and angle of observation.

The reality is that the top players in our society have a great deal of influence and power, and they may not always act in the best interests of the masses. Convincing people to challenge their beliefs and consider alternative viewpoints can be challenging. Still, it is essential to do so if we hope to enact meaningful change in our society.

As for the mountain of debt that we currently face, it is indeed a significant concern that could have dire consequences if left unchecked. However, this debt may one day seem relatively minor compared to future challenges.

The National Debt: Unstainable in the long run

Indeed, the rapid growth of our national debt is a cause for concern. It is alarming that we are adding trillions of dollars to the deficit every year when it took over 100 years to reach the $1 trillion mark.

One would expect the masses to be outraged and demand action to address this issue, but many people are either unaware of the problem or have become desensitized. This worrying trend could have severe consequences for our economy and financial stability.

The fact that money can be created out of thin air is one of the biggest problems with our current monetary system. It allows massive amounts of debt to be accumulated without any real consequence, at least in the short term. However, this debt will eventually need to be paid off, and the longer we wait, the more difficult it will be.

It is not inconceivable that the debt could continue to grow to astronomical levels. It is up to us as a society to demand that our leaders take action to address this issue before it is too late. The consequences of inaction could be dire, and we must act now to ensure a stable and prosperous future for ourselves and future generations.

Investing is not A black or white Type Subject.

Most investors get in a black-and-white way of thinking, where we only see two opposing sides. In reality, things are often more complex and nuanced than that.

FIAT currency itself is not inherently bad, as you rightly noted. It is the way that private bankers control the money supply that is the real issue. This is where the problem lies, as these individuals have the power to manipulate the system to their advantage, often at the expense of the general public.

Moving to a gold standard would not necessarily solve the problem. If the same corrupt individuals were in charge of the gold reserves, they could still manipulate the system and lie to the masses.

The real issue is not the type of currency we use but rather the people who control it. We need to find a way to ensure that the money supply is managed transparently and equitably to serve the needs of the entire population, not just a select few.

It may not be an easy task, but it is one that we must undertake if we hope to create a fair and just financial system for all. By recognizing the issue’s complexity and looking beyond the black-and-white picture, we can work towards a solution that benefits everyone.

Wrong Perceptions Lead To Faulty Outcomes

Indeed, taking a dogmatic approach to any issue can blind one to the underlying complexities and nuances. It is important to step back and examine the situation from multiple perspectives before jumping to any conclusions.

The elite players often use this tactic to manipulate the masses and maintain control. It is up to us to resist this manipulation by seeking out the truth and not simply accepting what is presented to us on the surface. Only by identifying the root cause of the problem can we hope to find a solution that will truly benefit all parties involved.

Stock Investing Mistakes: Solution and Strategies

However, the stock market is not a true reflection of the economy. The stock market is primarily fueled by cheap money from the central banks and corporate stock buybacks rather than real economic growth. This creates a dangerous bubble that is bound to burst at some point, causing massive losses for investors who are caught unaware.

Investors must know the risks and not blindly follow the herd mentality. Instead, investors should focus on building a diversified portfolio that can weather the storms of the market. This means investing in various asset classes, such as stocks, bonds, real estate, and commodities. It also means discipline and sticking to a long-term investment plan rather than chasing short-term gains.

The current economic situation is complex and requires a nuanced understanding. Blindly following one perspective or the other will not lead to success. Instead, investors should focus on building a well-diversified portfolio and staying disciplined in the face of market volatility.

The Elitist Game Plan: Why History Keeps Repeating Itself

We provide a concise overview of this subject below:

From the Tulip bubble to the Financial Meltdown of 2008, history has shown that the masses never learn and continue to make the same mistakes. They are willing to take risks when making money but scream bloody murder when they start to lose. Most investors lose money in the stock market mainly because they do not learn from history.

The top players have done a fantastic job of conning the masses, and it will take a monumental amount of pain and misery to change their outlook. The Fed spent excessive time altering the masses’ perception gradually over many decades. It’s hard to change your thinking, especially since everything is painted in a black-and-white picture. The masses will only see two perspectives and latch onto one of them. If the premise is wrong, no matter how hard you try, you will never find the correct answer.

A Contrarian View of the Stock Market & Fiat Currency

FIAT currency is not bad, but it’s bad because private bankers control the money. The outlook would not be so bad if they were not in charge. If we have a gold standard and crooks can control the reserves, what’s to prevent them from lying to the masses? It’s essential to identify the real problem and not grab one of the solutions being pushed on you by the elite players.

The Fed is hell-bent on flooding the system with money. There is no option but to devalue the currency or die. Anyone that tries to resist runs the risk of destroying their economy. The real solution is to let the economy undergo a cleansing phase, but today’s society is not ready to deal with such pain. Central bankers are happy to accommodate this stance, for they can pretend to help the masses while fleecing them of their last penny.

The stock market will continue to roar until the masses embrace this market. As the masses hate this market, it has a long way to go before it blows up. We need to understand that latching onto any perspective prevents us from seeing the other half of the equation, which is the elite players’ master game plan. They make us take a side and stick to it. The solution is to identify the real problem and not grab one of the solutions pushed on us by the elite players.

Research on Big Players vs The Small Investor

In a study by the University of Oxford, researchers found that institutional investors have an advantage over retail investors due to their access to information, resources, and technology. This advantage allows them to earn higher returns and outperform retail investors consistently. Source: https://www.oxfordmartin.ox.ac.uk/publications/institutional-vs-retail-investors-a-review-of-the-literature/
A report by the Wall Street Journal found that high-frequency traders, who use algorithms and super-fast computers to trade stocks, have the edge over small investors. They can buy and sell stocks within microseconds, taking advantage of small price differences in the market. This edge allows them to earn profits at the expense of small investors. Source: https://www.wsj.com/articles/how-high-speed-trading-firms-are-taking-over-wall-street-1471566206
A study by Vanguard, a leading investment management company, found that individual investors underperform the market by an average of 1.5% annually. This underperformance is due to factors such as emotional investing, lack of diversification, and high fees. Source: https://www.vanguard.com/pdf/ISGQVAA.pdf
An analysis by The Motley Fool, a financial advice website, found that retail investors who buy and sell individual stocks underperform the overall market. The study found that only 1 out of 100 retail investors was able to beat the market over a 15-year period. Source: https://www.fool.com/investing/general/2014/08/03/the-average-investor-earns-this-much-and-its-not-p.aspx
A report by the Financial Times found that large investment banks use complex financial instruments, such as derivatives, to earn profits at the expense of small investors. These instruments are often opaque and difficult to understand, making it easy for banks to take advantage of small investors. Source: https://www.ft.com/content/9875cf16-ffe7-11e2-886f-00144feabdc0
A study by the University of California found that mutual funds, which are popular investment vehicles for small investors, underperform the market due to high fees and expenses. The study found that the average mutual fund underperformed the market by 1.44% annually. Source: https://www.jstor.org/stable/2634639