Muddled minds harm investors so we need awareness of the psychological effects of isolation and confused thinking. This discussion continues the 10 Paralyzing Mental Blocks of Investors introduced in the last post. Isolation and confusion can quickly produce confused thinking and mentally block an investor from making the right decisions. Part 6 of the White Top View Series, Mind Game discussing emotions and psychological aspects of investing.
Tag Archives | risks
Financial advisor incompetence exposed in a CBC hidden camera video documents financial advisor incompetence. Show Me The Money ran February 28, 2014, as part of the Marketplace broadcast. Marketplace is a consumer information show broadcast on CBC TV in Canada.
Part 7 of 12 part Short Story on Short Selling series. Unique risks of selling short, Part 7 of the White Top View series on short selling, we discuss unique risks of short selling. Short sellers must cope with all the usual market risks as well as a particular set of additional risks. Only short sellers face these unique risks in the pursuit of profit, including management, dueling news releases, dividend changes, warrants and spinoffs.
Headline news warnings and stock market risks explained as possible market overreactions. Reactive trading and emotions can drive market action. At such times, turmoil, not smart investing decisions, drive markets. To avoid being spooked, and trading with your emotions, inform yourself, do your homework and take the long view.
Irrational behavior in normal markets are one can puzzle investors, especially investing novices. In fact, irrational behavior and normal markets are perfectly normal. They are the same thing. Most people think of themselves as rational beings. However when it comes to investing you can see much irrational behavior. Part 2 of the 6 part White Top View Series, Mind Game, discusses emotions and psychological aspects of investing.
Defense Against Stock Scams covers a $140 million stock scam from August, 2013. A reminder that awareness and homework are the best defense against scams. This post begins the White Top View Series, Scam Defense. Part 2: 4 tips make an easy stock scam check follows as our next post. Stock scamming crooks duped investors out of $140,000,000! Hundreds of victims in 35 countries were scammed by four Canadian sleazebags. They were assisted by five American stock crooks. So far 7 have been arrested.
Although you can be a little bit invested you should not be casual about where or how you invest. Investment thinking means carefully considering even a small investment. Consider it as seriously as you would if buying the entire company. You don’t want even a small bit or single share unless it would be worth your while owning it all. Warren Buffett teaches us, “Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.” That point of view starts you thinking like a capitalist. Your first obligation as a capitalist; always keep your money safe.