Académique Documents
Professionnel Documents
Culture Documents
We all want to succeed in everything that we do, including investing in the stock market. Though I have no analytical data to
back it up, I am convinced that most people will lose money in the stock market over their lifetime. So why do so few people succeed at investing?
Could it be that an individual’s desire to succeed be a significant reason for their failure.
When discussing investing with various people I come in contact with, the conversation always follows a similar track. Usually, one of these:
1. The person will mention a few stocks they did well with, then upon probing will admit overall they were down and they are looking for a new
strategy to follow.
2. The person will make a broad statement like ‘I’ve pulled everything out of the market it is just too risky.’ When pressed they admit to losing
money not only this time but at other times when they abruptly exited the market.
3. The person will concede that after significant losses they turned their money over to a professional.
Obviously, there are some success stories, and some of them are even believable. Due to the 2008 market downturn, most people are now comfortable
admitting losses because they know they are not alone. When you are losing 10% a year while the market is going up 20% a year, its harder to fess-up
since you feel you are the only one losing money.