Saturday, August 14, 2010

Successful Investing is a Lonely Activity

How often have you heard that? Well, my thoughts on the matter, especially pertaining to the stock market is that it does not necessary have to be solitary sport. You have to talk to people to get the ideas and to get a feel of what is going on and the interest levels.

However, the point of being lonely, is for you to sort out your thoughts, independently analyze and not get to caught up with "groupthink" or herding mentality. This is especially the case with penny stocks with unusual trading activity. A stock goes to the top volume list, then the next thing the investor does is go to an online forum and ask around. By the time you press your order, you have become the "greater fool".

But as Keynes pointed out, "It is better to fail conventionally than to succeed unconventionally". So you have been told.

1 comment:

  1. Well, investing is very lonely. Trust me on this haha. And I am not even considered successful yet! If I were to ever become "successful", I think I'll start talking to my computer! LOL!