Why Most Investors lose Money in the Stock Market? – HuffPost

Age of communication is creating more Dumb Investors due to information overload

Under the guise of being “well informed”, the Age of Communication races toward the time when information is instantaneously available via a modem and brain interface made of nonmaterial’s and implanted at birth. Hello, the ultimate cyber-geek. However, there is no proof that more information helps the majority to be any happier, compassionate, or give us a few more nanoseconds of leisure. Information overload is one of the reasons most Investors lose Money in the Stock Market; they don’t know how to separate the riff from the raff

Most of the information on the Internet is Tainted

If unable to evaluate information, or realise that all information is tainted with someone else’s values, its values become part of you, just like viral code being entwined in our own cell’s machinery – or computer code – or belief sets.

Our parents first mould These belief sets. It was then the role of religious institutions and schools to develop our “internal software”, but now we are in a time when most are weaned onto the boob tube. At school, we have teachers who were themselves nurtured on “the boob tube”. Take this principle one step further and apply it to the markets and you can see Most Investors lose Money in the Stock Market. They allow the values of these so-called experts to become part of them and then they start to think like these experts. Most of these experts are nothing but shills selling false information they would never use themselves.

Television destroys an individual’s ability to Imagine or think out of the box

With television, imagination is not needed for entertainment, and information of many types comes “plain wrapped” with no need to discriminate between reality and fiction, the useful or useless. Just 15 minutes of watching cartoons a day kill a child’s creativity.

There are many reasons that have been advanced as to why traders fail. My own experiences with educating traders are that:

  1. thinking without discrimination
  2. skimming information without understanding
  3. impatience with the expectation of quick gratification

The above three factors are major contributors to poor results.

Just as burning the bra didn’t help women’s liberation, smashing the boob tube is not going to change the way you think.

We must abandon ourselves to uncertainty and not cling to anything because it appears to be the answer. It is when we are prepared to look at multiple possibilities that we have the option to identify and follow The Truth.

By abandoning incorrect beliefs and certainty, we can follow The Truth.  Strange but True. Beliefs that are forged in the fires of doubt can survive the light of reality. All other beliefs remain untested. Will they survive? Will you survive?

Additional Insights into why Most Investors lose Money in the Stock Market

Most investors are not aware of Fiat and the dangers it poses. If you understand that Fiat only exists because the masses have been conned into believing it’s real money, then you will understand that all financial disasters are planned and that there will always be a solution. Why? Money is created out of thin air; hence, central bankers can create as much money as they want to rescue the financial system from the disaster they created. Each disaster creates a new breed of poor and makes the rich even richer. This market has been rigged since 2009 as central bankers not only injected billions to prop this market, but also created an enviroment that favoured extreme speculation

The stock market is full of snake oil salesman, all trying to sell you a different take but most of these experts don’t put a penny into what they are marketing. They make their money by selling you junk that they would never touch. Put this simple principle of Mass Psychology into play:

Be wary when the masses are happy and be happy when the masses are nervous.

Mass psychology states that one should never abandon the carriage until it’s about to buckle under its own weight. If you apply this principle to the markets; it boils down to buying when the masses panic (or there is blood in the streets) and selling when the masses are jumping up in Joy. While you are at it, master the simple principles of being a contrarian investor.

Information overkills creates a breed of dumb investors

The video details the dangers entailed of information overload

Originally published here

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