Art of Speculation in Stocks and Information diet

I know that the tale lies in the tail when it comes to speculating your savings in stocks. There cannot be a second opinion on how speculation is rapidly growing in popularity in recent times because of the easy access to investment market information through online brokerage portals, internet and financial media. It keeps the ‘herd track’ always vibrant. Should you want to follow the track? Think twice.

Speculating in stocks is like Yoga which is not just the poses, but also the breath, the meditation, and mental clearness. Speculation is a process that moves a person towards either to lose or to gain. Take an oath today that no more attending the ready made investors’ camp for quick fix solution to your super profits!

In other words while speculating you tend to master the art and science psychologically and mentally how to avoid any temptation to cast judgment of your buy-sell decisions. I am equally not questioning whether speculation has a place in the portfolios of investors is the subject of much debate. The bottom line is one cannot avoid speculation.

I don’t know and I am not clear to understand whether speculating in stocks is a science or art or good luck or guts. I know one thing that money is closely associated with our ego, relationship, happiness, emotion, safety, greed and so on.

It may not necessary for a computer to understand how it is programmed and it just runs the program but while investing in stocks you have to understand how you are programmed psychologically to handle all associated rationales of financial loss and gains.

In any walks of life there is certainly a “junk in, junk out”. It is all depend upon the information you consume. This is absolutely true when it comes to investing in stock market. Your information diet needs to be mindfully balanced to keep your portfolios healthy.

I wonder how many of our financial decisions are made consciously. If so how do we know we are conscious and don’t reflect our ego? When it comes to investing in shares we only listen to our inner voice of ego which determines ultimately one’s financial behavior. Unknowingly we act like professional speculators. May be in other words the abundance of choices increases complexity and decreases the brain’s ability to make prudent decisions.

When it comes to forecasting and speculating the prices of particular stock it has always remained as a cloudy one. The challenge for a speculator is to understand the beat of the rhyme of irrationality. I still wonder why decisions are made quickly when it comes to investing, selection, monitoring, buy or sell. If you think patiently such decisions are rarely simple.

If you think you are prepared fully to become a speculator or to groom yourself a professional speculator in stocks then stock traders cite the book, “How to Make Money in Stocks” by William O’Neil, as a valuable reference for learning the art of speculation.