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Maybe You Shouldn’t be Playing the Stock Game
The Stock Market is not a Slot Machine
We’ve been through unprecedented times — I’m not talking about the pandemic but, the crazy bull market run that we’ve had over the last two years. The market that’s now changing.
These kinds of markets change people. They instill “euphoria” and everyone become a stock expert. In the early runs, people do well. Anything they invest in seems to go up, regardless of what the company actually look likes. There’s nothing wrong with chasing price action, provided you know what you’re doing.
And therein lies the issue. Over the last four months, we no longer have the euphoria. All we have are the real money managers making their moves. And all we’ve seen is stocks that once had sky high prices, give up their gains.
The sad part is that people have actually gotten caught out. And are now sitting on huge paper losses because they didn’t think the music would stop.
But what’s funny is that those very same people still don’t learn. I’m all for people managing their own money. But, they need to do it the right way.
People who manage professionally have decades of experience and they’re doing it day in and day out. They consider a 100 different angles before they make a move and they have access to better, faster and more reliable information.
So, if someone is considering going up against that, the least they can do is put in some time and effort to learn, rather than treating the stock market like a slot machine. Sure you’ll probably get lucky once in a while but, in the long run the house will always win.
