The 7 lies that investors tend to follow

Among stock market investors, it is convinced that those who never knew björnmarknaden don’t know what the stock market really is.

1. ”To overcome the market”

In addition to the greed is the pride of one of the greatest sins on the stock exchange. Greed drives people to earn more and more money, which in turn means that the man thinks of himself in gudomlighetskategorin. To overcome the market and get a higher foothold than the market price is not completely wrong category and should be a cause for glory. Clements draws the attention of investors who want to do it. When the result of your portfolios differ from the index, change the time horizon and you realize that the 3-year return reflects the much better efficiency of investments. An extra impulse in the pursuit of a higher return can be the transition to the risky securities and how this can stop know many very well …

2. ”This selection gave me lots of money”

Like the first lie, the problem lies with pride. In the long term, the index will take up the values of a simple reason – the development of the economy, where companies ‘ shares are active. According to the article from the MarketsWatch has the entire u.s. stock market since 2009 more than tripled. Another problem is choosing the right company to maximize the avkastningsräntorna but Clements focuses on investorspsykologi. When it comes to such a tjurmarknad in the united states, many of which invests in securities that have all the more confidence when their portfolio grows. This can lead to the time when they stop making rational decisions. Consumers of such facilities after their first win, starting to feel increasingly bold and play with increasingly. The arrival of the björnmarknaden can for many be like a cold shower.

3. ”It’s their fault …”

It doesn’t matter who ”they” are. Whether it is the Fed, banks, brokers, speculators, or aliens from another planet. For many people are the ”they” is always required. Perfect proverb for this mode: ”Success has many fathers and failure is always an orphan.” A very important step in the development of every human being (not just investor) is the moment when he begins to take responsibility for their actions. When money is at stake, people start to which is perceived to be extremely responsible and start to blame others for their failure. This is understandable, which is destructive, because another lost position robs us of our money. It is important to not only be responsible for the profitable transactions but also for the decisions that led to that we lost.

4. ”My wallet is still growing!”

It is a good thing. Just multiply the capital, not risk it, is precisely the meaning of investment. But let us ask the question: How many of these gains will actually come from the market, and how much we pay ourselves? This is one of the worst lies that prospective investors may have. It is not derived from any misconception, lack of knowledge or inattention, but simply by deceiving himself. To spend further savings on the market can only lead to bankruptcy.

5. ”It is just a pappersförlust”

When we buy A-shares for sek 100 and after 2 weeks the price will be only 70 sek, it means that we have lost. But not everyone sees it that way. Many say that until the shares are sold, the loss is only paper. Worse if they are not dealing with profits in the same way, and willingly tell their friends they earn in each business. Where is the catch? Without a suitable level where we will stop for the stock (stop loss) it can prove pretty quickly that we become a shareholder in the company. Participants in the stock market has the advantage that when they are not using leverage is the final frontier for their losses is always zero.

6. ”I just bought it to diversify my wallet …”

When a transaction does not comply with a predetermined (and usually overly optimistic) plan, investors tend to reclassify it. Clements serves as an example of the gold that eagerly bought 2011. When it turned out that instead of the expected profits on the account were a loss, many investors changed the category from ”quickly and with great profit” category to the” will be useful at the next currency crisis ”.

7. ”This time, I’ll sell up to a maximum …”

Similar thoughts that this is just a waste – of time that instead can be devoted to a thorough market analysis. The problem with investing is that we don’t see the right side of the chart. The analysis of the history is useful if we want to, we feel sorry that we have not bought the X in march of last year.

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