Forum Archive Index - May 2000

[Gerry Tyler-Smith <g.tylersmith@ext.canterbury.ac.nz>]

Someone wrote:

 >Enough already
>to many emotions.

 as part of the reason people lose. The psychology of
>most  is still to ignore the downside so the tools for protection aren't
>used. Thats understandable, investors are positive on their investment,
>so they think protecting the downside is like doubting their decision.
>They are happy to hop onto a rising stock, but reluctant to hop off the
>freefaller.
>Although like the gapper you mentioned Rob, its impossible to protect.
>All you can do is not over invest in any 1 stock.


It's a lot of money some people have lost, and that's not meant to engender
emotion?  (Thank God, or perhaps Warren Buffet?,  I only invested $1800).

No one in their right mind would invest in any business if they too
seriously considered downsides ... try reading Cisco's last anuual report's
evaluation of risk ... it's a wonder they still even exist!   And
considering that even David McEwen in his newsletters has repeatedly
reccommened  Aquaria as 'BUY' (even as  recently as his April 28 Market
Lab),  when over the last few months  he has been so scathing of
Renaissance, Savoy,  Eforce, Strathmore, ITC, and even reccommending SELL
of such solid shares as Restaurant Brands and Telecom... Now, that the
smelly stuff has hit the whirly thing, young David is  finding refuge in
the word 'speculative".

It's very difficult for humans to resist the satisfaction of being able to
say "I told you so,' but it's not very helpful, and as sure as God made
little  Eric Watson  a smart and busy devil, it will engender emotion.





>j
>
>
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