Friday, August 3, 2012

Why People Fail in the Stock Market


The stock market truly is an interesting topic to look at and discuss a lot of time. The market represents a combination of many different things and bad decisions.

For some people, they make purchases based on impulses. Cool things they heard about, so they feel the need to buy and sell. Of course this mentality has somewhat crippled the United States Stock Exchange in many ways.



Then there is the greed manipulated by the prospect of money. Given how the economy has rather beaten us down in many ways, it does stand to reason that we feel like the pursuit to success is through making more money. There is another connection to be drawn about making too much money.  Therefore people over indulge themselves and get obsessed.

Then there is over analyzing news out of various companies. There are many times where people jump to some pretty wild conclusions. Sometimes said conclusions represent a rather intriguing little bit of stream of conscious thinking. Of course people tend to overcompensate and thus that inflames their brain. This represents a desire for them to use preconceived notions to invest.

Obviously all of these ideals represent a rather flawed concept. Therefore the stock market has been damaged and thus the economy.

Have there been people who invested big and earn much? Yes, there have been a number of people who have done this. They have done rather well. Investment represents a number of risks and problems.

Essentially if one fails to do their homework and really study the market, they will really fail. Many great ideals fly completely off of the rails due to  indulging on greed, making too many conclusions, and really just making bad decisions.

The pursuit of money through stock market investment can make you independently wealthy. Of course, the single minded pursuit of money has lead many people into financial ruin. Often this leads to some other problems.

Being unable to properly think or have an open mind is a rather big problem. Many people had have an inability to draw the proper conclusions from their investment. It can be done, if you can help. However, you need to really be careful what you do and how you do it.

Investment requires careful calculation, an open mind, and not being overly paranoid. The best of us mistake signs.

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