List of behaviors that are bound to fail when investing in stocks

Because many readers are concerned about the post I wrote two years ago, “Why do most people fail in stocks investment? 4 simple reasons” received an enthusiastic response, and today’s post is its sequel.

If you find that you are one of the behaviors listed in this post that are bound to fail when investing in stocks, and it is difficult and unwilling to change this behavior, then I advise you to stay away early before you realize that you have suffered huge losses much later in the future. You had better not choose stock market and use other methods to accumulate or increase your wealth.

Table of Contents

Short term thinking

They do not believe that long-term investment is the way to make money in the stock market, and they rush out of the market after making or losing a small profit; they regard long-term investment as the financial management behavior of a fool and a miser. Deep down deep in my heart, I still regard the stock market as a place for speculation, gambling and making quick money. I don’t even believe that stock market investment is a specialized knowledge.

Chasing a ticker

All behaviors are based on chasing a ticker and rationalizing such behavior. Chasing hot and hyped stocks without asking the reasons and consequences, let alone knowing why you want to buy well-known or popular stocks.

When the stock goes up, you think you am wise. If fall, blame the person who provided the ticker.

This is why “Investors who chase for touted stocks, doomed to fail“

Complicate investing

They don’t believe in “The simpler the investment, the better” and are unwilling to invest in indexes. There are simple ways to get rich but they choose complicated methods. People believe that the key to making big money must find a “secret”. People don’t believe that “Most investors should invest ETFs tracking broader market“.

People don’t want to believe that “Investing has no formulas, but there are ways to invest successfully“, and don’t accept “The main investment principles of successful investors are similar“, not believe “Why timing the market or swing trading simply not work?“

Not figure out the fundamental

Not sure what rate of return is? How to calculate? Don’t care about their specific investment figures and never record investment information; then, “What information should investors document?“. Never wanted to take the time to calculate how much money you have made since investing in stocks? How much money was lost? Why did you choose to invest in stocks? Is it suitable for me to use stocks as a way to manage money?

The worst part is not knowing what return on investment figure is reasonable? In fact, most of the “lifetime investment returns” of the celebrity, so-called investment experts, financial experts, and Youtuber reported by the media that you track every day or people said are terrible. Not only are they lower than the stock market index, they are even higher than your own investment returns. Still bad.

How to check your investment return rate? In fact, there is a method:”A investor can be sustained or not? how to verify?“, and what it matters is your IRR, please click “Investors should care annualized rate of return (IRR), calculate with free IRR Calculator“

Escape from market crash and run for bull market

People don’t believe in “Market volatility is investors’ friend“, don’t believe in “Investors should be happy when market crash“; always stick together for warmth, always buy high and sell low, don’t want to explore what “Todolist when the stock market crashes“, don’t want to care about “How to deal with market crash or sharp pullback?“

Don’t want to hear the truth

The two sayings “Advice when most needed is least heeded” and “All his geese are swans” are still true in stock market investment. I personally am very disturbed by this phenomenon. I have repeatedly stated in my blog that “Negative message is part of investment“, but the consequence have been very bad. There are even a few people who lose their minds and say evil things because of my truth, which is really shocking.

Human nature is always arrogant, likes to form cliques; just like when someone criticizes you in person, most people will not accept it readily, nor do they have the grace to admit it.

Follow the crowd

“Thinking cannot be outsourced“. People are lazy and do not want to understand the ins and outs of things, do not have the ability to think independently., do not believe in “Investing is not voting“, brainwashed without knowing it. No one wants to be harvested leeks, but the strange thing is that most people are happy to be lemmings, manipulated and used; in the end, their families are ruined, they are sold to help people make money, and they defend others.

As others say, after all, people feel safe in a crowded place. But the masses are always blind. There is a passage in the Yongzheng Dynasty TV series that makes it clear and appropriate: “Speak out opportunities, shut up opportunities, how can there be so many ready-made opportunities waiting for you. Things that everyone can see and get involved in, then do you still call it a opportunity?”

Jim Rogers , one of the partners of Quantum Fund. Rogers once mentioned in his book that when his mother asked Rogers to buy a stock for her that neighbors, relatives and friends had bought and made a lot of money, he told his mother: “Mom, you should buy this stock before it goes up.” “Buy it beforehand, instead of drowning in this muddy water when most people are crazy about buying and participating.”

In 1927, Joseph Sr. Kennedy theorized that when shoe shine boys were discussing stock investments, that was when stock market trading reached its peak, and then fell. This is the famous and hilarious “shoe shine boy theory.”

Superstitious expert

Believe in the existence of so-called financial and stock market experts, believe in gossip, believe in the good news reported by friends, and regard being brainwashed and indoctrinated with incorrect investment concepts as knowledge about stock market investment. Treat Internet memes, Internet celebrity live broadcasts, TV financial programs, and speeches by school finance professors with empty theories, and investment consultants as investment homework.

Despise hardworking

People just want to get something for nothing, just want to get the stock tickers, chasing for touted stocks, don’t want to know why, don’t want to know the business of the company you bought, let alone invest time to figure out why the stock price rises or falls.

People believe that you have to work 9 to 5, go to work on time, and put in time and effort to earn a salary; but people don’t want to put in time and effort in stocks and investments. People believe that the stock market can make him rich overnight, but don’t want to spend time studying the operating status of the stocks of the companies hold.

Stop being such a clever dick

Most people believe that IQ is more important than personality when it comes to investing in stocks. “Too high IQ is not useful in investment, but will hinder” and “Why people with high IQ prone invest failed“

Egomaniac

People believe that the God of fate will favor me, believe that this time is different, believe that I have finally found the magic stock tickers and the secret of martial arts to get rich overnight. As everyone knows, “Investors who chase for touted stocks, doomed to fail“

Paranoid

Don’t want to get rich slowly, and don’t want to follow the very few (please note that there are very few) sound and reliable investment methods for getting rich that have been proven by the investment masters in history.

Obsessively believing that all successful investors rely on insider information, denying successful people, and turning a blind eye to the efforts of others behind the scenes – and finally becoming “Haters, the cancer of modern society“.

Over time, it becomes a natural habit; always find excuse to justify poor investment performance, blame everything, but never blame yourself, and never calm down to review the mistakes you should not have made.

behavior — credit: isbglobalservices.com

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.
I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers’ direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.