Today I want to ponder an existential investing question.
It is a question bugging mankind since dinosaurs roamed the earth and the neanderthal man walked around with his cudgel making growling noises.
I exaggerate but you get my point. The issue at hand is deep set. It involves every investor. It is painful.
The question is this – Why do retail investors lose money in the stock market?
I have my own ideas but rather than have you
sail through a fog sit through a long article to provide you with a seemingly plausible answer, let us do it a little differently. No answers from me today. Instead, i have questions. Many questions. 34 of them to be exact.
Today, let us indulge in a spot of Socratic Enquiry and see where this leads us. Here goes
2. Could one of the reasons be – because investors tend to buy ‘high’?
3. Why do you think investors often end up buying high?
4. Could it also be because that is the time where everyone is buying and it is comfortable to follow the crowd?
5. Would you agree then that following the crowd is a bad strategy for successful …read more