Stock investments- is it an art, science or herd?

The curtain is going to fall on 2011.
Investors’ grumbling has been louder in 2011.

Exchange rate volatility,inflation,debt and very marginal industrial growth mirrored the global economy in 2011.
Investors have experienced both the bright and the dull side of the trend.

I think that  stock investors learned lot of lessons in 2011 compared to earlier years’ of ups and downs.
May be due to the fact that the trend got tired when compared to the  wild fluctuations of stock prices of individual scrips.

Often I  wonder how the dice of hope and fear is rolled into the prices of stocks.
Investing in stock markets is a different ballgame altogether.
The error of safety is not even fifty-fifty given the global financial and economic situation.
It is no more every one’s cup.It is also no more a chance play.

Investors at least at the retail level neither have the courage nor readiness to wade the waters to measure the depth.
When it comes to their own hard earned money for investing in stocks their language of investments assume a different grammar altogether!
Serious issue  and the bottom line reality is that most of us end up HERDING in our investment choices.
Sometime such moves end up in brilliant results. Not of course always.

Investors go philosophical when holes are punched into their investments.
Investors go jubilant when the index zoom up irrespective of the fact whether their share prices go up or not.
Here hope becomes their guiding companion.Fear takes a back seat.

Stock investments are nothing but psychology driven.
No way at any point of time technical or fundamental aspects of the market forces govern one’s neutral thinking.
Research very often proves that the role of critical thinking is the missing link in the decision making process.
Individual’s perception and  mood become a crucial inputs for investment decisions.
Reports,discussions and investment tutorials are often thrown into the winds!

Although you know very well and argue with me too that it is better and safer to go with the majority.
I am not doubting your thought that going with the investment crowd often not means financial suicide.
If you think it so like that I strongly believe that you will most of the time end up buying at tops and selling at bottoms.

2012 is just around the corner.
At least for 2012 don’t align your investment thoughts with HERD.

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