Why most of us losing money?
Are you investing some money in stock, Cryptocurrency, company, or somewhere where you think you can grow for later on or for your retirement? But, have you asked these questions yourself?
- Am I doing really investing?
- How can I say that I am doing investing?
- How can I explain and define investing?
- What about Speculating, what is my attitude towards markets?
- What is my psychology towards markets or companies?
- Am I only looking at the Chart of Company every day? When do i need to educate myself about how I need to analyze the company and how I can analyze stock?
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What is Speculation and Investing?
Firstly: Maynard Keynes: ” Investment is an activity of forecasting the yield on assets over the life of the asset;…..speculation is the activity of forecasting the psychology of the market.”
Secondly: Benjamin Graham: “An investment operation is one which, upon thorough analysis, promises safety of principal and a satisfactory return. Operation not meeting this requirement are speculative.”
Finally: Warren buffet: “If you’re an investor, you are looking at what the asset – in our case, business – will do. If you’re a speculator, you’re primarily forecasting on what the price will do independent of the business.”
Important
“Please be aware that our discussion here is only for educational purposes. We don’t provide investment advice, and this article shouldn’t consider as trading and investment advice. Every time makes your research of any personal investment is good for you, your risk tolerance, and financial means, before jump into a transaction. If you have a doubt, please consult with a financial adviser.”
Deep into you and Our Legend Investor?
Let’s get into the inside, if you are watching everyday company charts or stock prices maybe you are speculating and it can lead you to lose lots of money. Furthermore, if you’re trying to investing using so-called technical analysis. According to our father of value investor Benjamin graham’s book called Security analysis point out us towards this conclusion about technical analysis:
- Chart reading cannot possibly be a science.
- It has not proved itself in the past to be a dependable method of making profits in the stock market.
- Its theoretical basis rests upon faulty logic or else upon mere assertion.
- Its vogue is due to certain advantages it possesses over haphazard speculation, but these advantages tend to diminish as the number of chart students increases.
Again, Security analysis telling us the truth:
“Furthermore, Chart Reading, not a science, and its practice cannot be continuously successful. That chart reading cannot be science is clearly demonstrable. If it were a science, its conclusion would be as a rule dependable. In that case, everybody could predict tomorrow’s or next week’s price changes, and hence everyone could make money continuously by buying and selling at the right time. This is patently impossible.”
Solution for Us
From the above research, finally, we lead to the conclusion that financial education is most important for the public or individuals. In addition, Speculation can lead to loss of a lot of money. In addition, speculation can be funny and easy as a game. But, speculator should understand that he/she might lose his/her part or whole capital that he/she invest in Stock or company. To becomes a successful investor, he/she should control his/her emotions, avoid speculative attitudes, and need to make education about how to analyze markets and security.
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