Investors who chase for touted stocks, doomed to fail

touted stocks

Touted stock, lotto, meme stocks, gambling; no matter what it is, the final outcome is that it is impossible to succeed.

touted stocks

Most people think touted stock is useful

My article today will cause discomfort to some readers, of course I know this. However, I will not hesitate because I am afraid of disagreeing with the majority of people’s opinions or practices, and only say what everyone likes to listen to ( I don’t need to please the majority); not to mention the original intention of my blog. Just want to tell the truth and share what you think is right . Most of the things that make you comfortable and happy on the investment road, or the things that most people are doing, usually don’t make money.

An appropriate case

This topic can’t help but remind me of when I worked in the IT industry in the past, because I myself was one of the few members of the global final technical solution team of a multinational company, and I often had to face the most difficult and the long-delayed cases escalated from regional centers.

A common situation is that there are a bunch of people in the meeting, and there is never a shortage of officials who are boring to talk nonsense. The person who are in the notified of the copy (CC) list is always longer than the one listed in the recipient (To) list. When on the phone call or in a meeting, no one want to know why this problem is caused.

Explaining the problem will definitely be interrupted because most people in this world are impatient, and no one wants to know why. Just like the stock market, most people don’t want to do research, they just want to know the touted stocks. The mentality is exactly the same. This is human nature). Nobody want to know what should I do next time if encounter a similar problem?

The vast majority of people just want to know, is it solved? Just tell me which number should be modified; but no one wants to know the root cause, so the problem will happen again and again! Because no one wants to investigate the root cause (it takes time to study, read documents, do experiment and review, nobody wants to do such kind of thing, it is better to have a meal with the boss to please the boss), no one wants to offend people.

Your posture in diving to save people was not good

Forget it, if the problem is solved, there will still be a bunch of post-mortem people to question afterwards. This gives me the same feeling as if I jumped into the water to rescue the drowning person, but after going ashore, a large group of people on the shore said: “Hay, your posture for diving just now is not good. Hurry up, you are swimming too slowly, and the drowning person is drinking a few more sips of water. It really shouldn’t.”

I just know it and don’t know why

Investors who are looking for touted stock everywhere are just like the ones I described above. They just want to know if the problem is solved. It’s the same as people who tell me to change the number. They just want to know the answer (the stock code), and they’re not interested in knowing why. (spend time to research).

It’s no different from most people in this world, even if the stock does go up (most of the answers are actually no), then what? You never know why this stock will go up instead of another (regardless of the usual answer is no); the result is that you can only rely on other people to feed the stock code and sell you in high price. This is why there are so many people who want to sell stock code to make money, because there is always a market for it.

Chasing for touted stocks is the same as buying lottery

Even if the price paid is high, the supply is still in short supply; retail investors have never been willing to investigate whether these people who sell you touted stock are making money or losing money on their own investments? What is the reason and basis for saying that stock will rise? Even if you buy a stock code and don’t go up, there will always be retail investors rushing in and continue to buy a stock code.

If the touted stock does not rise, retail investors will comfort themselves or say on behalf of the seller, as long as a few of the touted stocks have risen ever, it will be fine; then what is the difference between this behavior and buying lotto or gambling? Continue to burn incense and pray to the Buddha and ask the next touted stock to try your luck. Your investment life will always be trapped in a never-ending vicious circle of a rat race. You will always only spin around in the same place, even if you waste hard-earned money.

The point is to waste your precious life and time. Just as I mentioned my views and experience in another article “Necessary conditions for successful investment trilogy: Do investing homework by yourself“. You never know why the stock rise, you will give up the ability to learn to discover star stocks on your own. Frankly speaking, you will never make a lot of money in the stock market.

Of course I understand that this article is not pleasing, and very few people are willing to listen (and I would not expect most people to listen). However, this is human nature, and I am not surprised at all. Investing in the stock market is better than working in the workplace.

You never know know why stock up or down

The reason is that I mentioned my views and experience in another article “The advantages of stock investment, except money“. You don’t need to care about other people’s opinions and insist on doing the right thing. After all, your investment performance can prove that your opinion is right.

It’s impossible to make money in stock without effort paid

As I pointed out in another blog post, if you are lazy or want to make money in the stock market with the idea of getting something for nothing, I advise investors who hold these two mentalities to leave the stock market as soon as possible, because you can’t make a lot of money.

Disclaimer

  • The content of this site is the author’s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.
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