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Pastimes : Daytrading and Stock Trading Addiction -- Ignore unavailable to you. Want to Upgrade?

To: bobby beara who wrote (311)	3/7/1999 9:27:00 PM
From: Jags	Read Replies (1) \| Respond to of 330

>>Computers and a plethora information have given >>the average joe the 'feeling' that he can beat the >>insiders at their own game.... Online discount brokerages, umpteen sites with free news and breakout alerts, discovery of something called TA (-g-), subscription to 10s of stock mailing lists..... Its called the "liberation of the induvijual investor". ;-) Jags

To: bobby beara who wrote (311)	5/15/1999 2:33:00 AM
From: VCMaverick	Respond to of 330

You dont buy stocks like you go looking for TV shows to watch You dont try to pass the buck for making a series of poor decisions by claiming addiction. That kinda scapegoating is just going to exacerbate your current problem as a trader. That problem being the inability to distinguish or unwillingness to acknowledge that an initial decision was poor. Instead, you make more poor decisions to try to prove to yourself that the initial decision was not poor at all. The cycle escalates to the point where the rational mind is totally overridden by out of control emotions, and trading becomes nothing more than gambling. Before u know it, you're barefoot, bankrupt, and looking for a new job. Traders have to exist mentally in a state of disconnect from their emotional mind, while not totally abandoning it, as this is the key to predicting the "crowds" behavior towards a market event. Your emotional mind has to serve your rational mind. You experience emotion with the crowd for the purpose of analyzing it and projecting its consequences. The second your emotional mind overcomes you, you lose. The relationship between buyer and seller works only because two parties are willing to take opposing views on the value of a given object and meet somewhere in the middle to execute the transaction. With that in mind, remember anytime u buy stock, somebody sells you stock too. And that person thinks that stock has reached its full potential value or reached the peak stage of growth. You better be sure they are wrong if u plan to make money on the transaction. To do that its gonna take some serious energy on your part to find out the facts about what u are really buying. Far too many people buy stocks with the same impunity and carelessness that they look for a TV show to watch. Just because it gets ratings and media attention doesnt mean a stock is going be there for the long haul -- glitz and glammer doesnt make a well executed business plan or management team. Hey, but the masses love this stuff you say. Maybe so, but the purpose of the company is to make money and create something of value, not just sell more stock to more suckers down the line. Eventually it comes time to pay the piper. Claiming addiction simply fails to address the flaws in your stock selection or trading method. Humans make mistakes, granted. But through acknowledging these mistakes is how we grow. When we fail to acknowledge these mistakes early in the name of saving face or ego, the long term consequences are compounded and may potentially be fatal to both career, family, and health.