Losing money is part of investing. If you are not prepared for this, I advise you to stay away from the stock market as soon as possible. A few days ago, I heard a host reveal that a female financial anchor recently complaints (this makes me recommend you to read my other general article “Investors should stop worshiping celebrities“) ; Said that she suffered a miserable investment loss this year because she was framed by the “villain” (I copied the original words).
The female anchor said that in the past, she also bought stocks with the advice of this friend, and she made some money; therefore, she once again accepted a stock touted provided by this friend, bet heavily on this stock, and invested a lot of money. Unexpectedly, she lost a lot of money this time. The host who exposed the matter said disapprovingly; why should you listen to stock touted to buy stocks? You are even the host of the financial media. You should make your own judgment when you hear any investment opinions, and there is no concept of stop loss.
I appreciate the response of the host who exposed this matter. Readers who are interested in this topic can first refer to my previous article “Investors who chase for touted stocks” To be honest, based on bad experience, I basically will not and will not provide the so-called touted stocks (of course this will offend many people). Even if I provide comments, I will emphasize to the inquirer that it is my personal opinion, and you must make your own investment judgment; just like my website homepage, blog homepage, each blog post will clearly mark the statement at the end of this article.
The reason why I am “very disgusted” with this kind of thing is as follows, and I put it forward for your reference:
- “Most people” will lose their rationality when it comes to things like money. This is the most basic human nature; I suggest that you don’t test human nature.
- Usually when people make money, people will think he or she is wise, and will definitely forget that who recommend the stock make money for him or her, and will not thank the person who provided the idea (I want to emphasize again: to chase for touted stocks is basically a wrong investment behavior, for any reason).
- If you lose money, you must immediately remember who provided the idea, and “absolutely” will be blamed on the person who provided the stock code.
- Regardless of the reason, even if someone provides you with the stock code, as an investor, you should make your own investment judgment and do not accept it in full; no matter which person provides you with the celebrity. But the problem is that people are lazy, they don’t want to spend time to do fundamental research and want to get something for nothing. There is no free lunch in the world, but when it comes to investing, most people forget it.
- No one is omniscient, and the circle of human abilities is not too big. And there are very few people who are able to provide investment advice or opinions, but most people are unwilling to believe these very basic principles.
- Most people, if they know someone is a successful investor, they will assume that this successful friend has the “obligation” to share a stock code to make people rich.
- I have experienced it many times, explaining to the inquirer what the correct investment concept is, or when I kindly advise to buy an ETF tracking broader market that is more advantageous, conservative, safe, or more suitable for different people’s investment methods; the other party will immediately shows disapproval and obvious impatient attitude; both outwardly and inwardly, think I am just unwilling to help.
- I often get blamed for not share people the stock code that can double in the short term, complaining that I have invested so successfully, I must have many stock codes in my hands, and I just don’t want to help ────but just like Buffett said “Guess the market, that’s what God is doing.” In his book “One Up On Wall Street“. Another investment guru Peter Lynch has the same view: “Obviously, you don’t have to be able to predict the stock market to make money in stocks, otherwise I won’t make money.” I am not a god, I do not have this ability, and of course I will not share the stock codes.
- A very successful investor will not provide touted stocks because he knows it shouldn’t; he knows that offering a stock code will harm others. But most investors are looking for touted stocks every day, and they believe that they must be so to make a fortune. This is one of the obvious differences between whether they can make a lot of money and whether they can invest successfully.
The main reason for not providing the stock code
Providing the stock codes will only make people losing money:
- You don’t know anything about the stock code that you have heard. It is impossible to succeed by investing in things you don’t understand. In particular, most retail investors are mostly engaged in the pursuit of short-term profits. Whenever there is news about a long or negative news for the stock, they have no ability to judge, and they will often miss the measures they should take as a result. If you refute that you have made money from the touted stocks, I’m sorry (not congratulations) to tell you that you are gambling, just like buying lottery, that is not an investment.
- Not everyone is suitable for stock investing. Investing in individual stocks requires a lot of effort. Most people actually suit investing in ETFs that track the broader market. But most people forget about this and only see the possible high returns of investing in individual stocks (the human nature tends to hide evil and promote good. Most people will only publicize success and best investment achievements, and will not disclose the experience of failure, especially huge amounts of investing failure). Please read my blog article “Investors don’t like negative news“.
Investors are hungry for touted stocks
Discussing investment, especially exchanging opinions on facts and sharing blind spots, would be helpful to anything in theory, and it should even be encouraged. But in my nearly 30 years of experience, investment in stocks is completely different. Almost all people just start by asking, “Give me couple of stock code!”, and those with a little bit of skill use it in a roundabout way. It said “Do you think this stock will rise?
A celebrity or my friend recommended this one, what do you think?” In my life as far as I can remember, almost no one has started like this “I have studied this company for a long time, and it said in the financial report…, Based on…it did…last year, the company’s products…as compare to the competitors’…I think…;”
Those who are looking for the touted stocks will never have a successful investment day.
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