Investors
may not be satisfied or successful while investing because they may not deserve
to be satisfied or successful based on the way they manage the business, their
business, of seeking investment advice from others or personally investing their
capital in the financial markets. They: -
Tend to chose to learn how to invest the hard way while trying to invest the easy
way because they:
- Respond
to fatally flawed, instant gratification investment solutions—such as Hedge
Funds, Quantitative Funds, ABCP Conduits, and Private Equity—which, when
all is said and done, will cause untold financial misery to the masses of investing
unsuspecting.
- Refuse
to do the planning and the work that is necessary to prosper in the financial
markets, are unwilling to learn or do what they need to learn and do in order
to evaluate and select investments, investment advice, and investment portfolios
to either manage their own capital or to make informed decisions when they delegate
investment planning and investing to an investment advisor.
- Often
do not know the critical investment questions they need to ask to make informed
investing decisions.
- Often
do not know the questions to ask to distinguish between good and bad investment
advice, the naïve look for investment shortcuts and instant gratification investment
solutions, and the reckless confuse knowing what an investment strategy is and
how it can work with being able to make it work successfully; trading and options
for example.
- Have
been programmed in a Modern Portfolio Theory investment environment to
think they are investment helpless and vulnerable to the so-called new mysteries
and modern complexities of "new economy" investing.
- Have
often been lulled into data stupors and market trances from all forms of information
merchants who claim insight into the mystic abstractions of the financial markets
while using the investment past to predict the investment future.
Investors
often look for and settle for options made easy, green-arrow-red arrow
investment software programs that create the illusion of investing sophistication,
but, in fact, have absolutely no interpretive or predictive investment evaluation
or market forecasting capabilities. - These
types of investment software programs actually do nothing more than pretend
to predict future investment valuations and market directions based on the historical
investment database installed in the software, the limitations, assumptions, and
exceptions programmed into the software, the variables and their ranges as programmed
and as selected by the user, and the erroneous presumption that investment history
will somehow just repeat itself with the same frequencies, durations, levels,
relative valuations, and volatilities; absurd, as anyone who has spent more
than a nanosecond in the financial markets would, should know and, if true, would
instantly eliminate the need for responsible investment analysts and capable investment
advisors.
Investors
often
fail to consider all four of
the equally important investment outcome determinant variables of investment selection,
investment management, portfolio design, and portfolio management policies, procedures,
and disciplines, each with their own unique and specific rules of guidance and
governance, and depend on only the first of these variables, investment selection
to determine investing outcomes.
Investors
often respond to instant gratification investment solutions and the promises of
extraordinary and impossible investment returns with the use of investment strategies
that are presented as manageable low or moderate risk investing while they are
nothing more than unmanageable high risk gambling. Investors
often fail to think or to ask that if what is being taught, presented, or recommended
is so easy, certain, and extraordinary, why are these individuals even talking
to me, why do they even need me? Investors
often refuse to do the planning and the work that is necessary to prosper in the
financial markets. Investors
are often unwilling to learn what they need to learn and do what they need to
do in order to invest effectively for themselves or to evaluate investment advising
expertise of others before they delegate investment planning and work to a skilled
investment advisor. Investors
do not understand that when they are told that they could lose all of their capital
that they probably will lose all of their capital. Investor
often taken part in costly conversations.
- "Let’s
get started. We'll figure out the details later on." "I don’t really
understand." "Read it? I don’t have the time." "Where do you
want me to sign?" "Don’t worry, let’s just have some fun." "We
can draw up an agreement after we get going." "It looks OK to
me." "Your word is good enough for me." "I trust you."
"You seem to know what you are doing."
- The
results are that investors often do not follow proven portfolio design and management
disciplines, rules, and procedures that govern the what, when, why, how, and what
ifs of investing. Whim, mood, fancy, fear, and greed often seem to rule the day.
The
investing naïve and unsuspecting look for investment shortcuts and instant gratification
investment solutions and software.
Investors
tend to confuse
knowing what an investment or trading strategy is (options, for example) and how
it can work with being able to make it work successfully. - As
a result, they respond to reckless red-arrow,
green-arrow, options made easy instant gratification investment solutions.
Investors
typically refuse to do the planning and
the work that is necessary to prosper in the financial markets.
Investors
are often unwilling to learn or do what they need to learn and do in order to
evaluate investments, sources for investment advice, and investment portfolios
to either manage their own capital or to delegate investment planning and work
to a skilled investment advisor. Investors
are often exposed to hit and run investment advice being sold random,
isolated, sometimes frequent investment transactions with no clear investment
goal in mind.
Investors
tend to be stubborn after an investment has been made. - They
defend their unwillingness to take action in the face of 'clear and present
danger' by resolutely stating that 'I am a long-term investor;' the weakest
and worst reason for not taking action.
- 'Buy,
hold, and forget'
is not an investment performance option.
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