Mind viruses-It’s all start with extremes in investor psychology

I don’t know how to understand the market indicators and chart lines. I get perplexed by the vocabularies used by stock analysts and punters in defining the market trends. I am an average Joe and not a self proclaimed wizard when it comes to stock investments.

If I say so that one has to apply what is popularly called “Failure mode and effects analysis” (Wikipedia, the free encyclopedia– Failure Mode and Effect Analysis: FMEA from Theory to Execution) into financial and stock investments I may be called as pessimist by my friends but in today’s global financial and economic situation one cannot avoid perhaps.

I know that the market is always filled with full of volatility and fluctuations. I also know there cannot be two moons. To my surprise stock punters and analysts very often bet on to prove their point that there exist two moons.  Sometime they do succeed surprisingly!

Some would say market shows the gale sign and for others it may be showing a hurricane trend. Often I think such analysis is routine activity like buttering on the loaf of your breakfast breads. Is it becoming any one’s skill and all think that any one can understand and accordingly place their bets on it. It is not as true and simple when you try to execute it practically.

I know that stock market always come out with two tales. One is bullish and the other is bearish story and the common villain for both the stories is ‘bubble’. Normal investors often get themselves drenched in it and fondly on the look out for ways to get out of their (mostly wrong) entry from their investments with loss peeping out.

I have very simple and normal investment attitude and believe in getting rich slowly.

Therefore, I don’t fit myself into the community of cyber- market tribes hunting for tips and scoops by searching out in the net religiously to influence my investment decisions.

It would bring out in you a different kind of perception if you could lay your hands on the best-selling book-Virus of the Mind: The New Science of the Meme, Richard Brodie.

I always remember, when it comes to stock investments and financial planning the words of Publilius Syrus”Art has a double face, of expression and illusion, just like science has a double face: the reality of error and the phantom of truth.” Equally such point of thinking applies to all our financial and stock investment decisions.

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