Ten Ways to Tell if an “Investor” Belongs to The Herd
First of all, let me make it clear that I absolutely love the herd!
They are those wonderful gamblers who provide us with most of the bargains we come across when we actually invest. So, while I’ve chosen to dedicate myself to trying to convert as many herd-members as possible to become solid and successful investors, I would hate to think of what this investing arena would be like without them!
Before I say anything, you’ve got to know that I was once very much the herd-member. So I can speak with some authority.
That said, here are ten ways you can tell if someone runs with the herd:
Reminder: Join me on Take Stock with Ellis Traub, Thursday evenings at 7:30PM Eastern (6:30PM Central). Call (347) 857-3608 to listen. Dial "1" to chat. This week we’re going to talk about "risk," and why there should be none.
- He uses the words, “in on the ground floor” often.
- He quotes CNBC’s “talking heads.”
- He prefers a good story about an exciting product to a financial statement.
- Charts with squiggly lines on his computer screen are more exciting than an action film.
- “When to sell” and “target price” have more meaning for him than “why to sell.”
- Declining prices are reasons to sell instead of opportunities to buy.
- Why the financial pages devote their crowded space to reporting P/Es escapes him.
- You hear about the bucks he made on a big trade; not about all he lost on the others.
- The words, “win” and “lose” are a part of his investment vocabulary.
- He probably doesn’t own any stocks he could sell us right now.
Recognize anyone?
Food for Thought, Fundamental Investment Views, How to Invest, NAIC Veterans' Lounge, Successful Investing
In truth, immediately i didn’t understand the essence. But after re-reading all at once became clear.
Generally I do not post on blogs, but I would like to say that this post really forced me to do so, Excellent post! :)