Biased people against stocks

[Smurf1976]

We do not need to fully understand something to use it. But if our understanding is insufficient, more bad stuff tends to happen than would otherwise be the case.

+1

A key difference with investing is the presumption of DIY when it comes to the stock market. If you are buying shares directly, or are investing in an "all stocks" managed fund, then you have basically chosen to totally (direct) or partly (managed fund) DIY the decision making process as to what to invest in. And if things go wrong, well then you're on your own to deal with it.

If the computer, car or electricity stops working then most people will call a professional, or at least a friend, to assist if they can't spot the problem themselves. But if your self selected share portfolio drops 20% next week, well then what do you do? Most wouldn't even think of paying someone for advice in that situation. Then emotion combined with lack of knowledge takes over.....

We'd have a lot more people electrocuted if they took the same approach to electricity as is taken with investing. Nobody in their right mind just pokes random wires into random terminals, does the screws up then turns the power on hoping for the best. But that's pretty much what many do when it comes to investing and that leads to fear amongst those who don't understand anything about it. They'd be terrified of electricity too if we took the same approach and every second house burnt down.

 

[barney]

What a pessimistic outlook. Every day we have examples of ordinary people doing good things. Concerned individuals who look out for others. Scientists who make life saving discoveries. I believe most people are fundamentally well motivated. Beliefs such as you have expressed above, if held by enough of the population, have the capacity to be self-fulfilling. If you constantly, e.g. tell indigenous people that they will never make anything of themselves, that their destiny is to fail, then that is what will happen.

In contrast, if we instil in ourselves and others the belief that we are all capable of achieving more than we thought possible, that we have resources we've not yet recognised, then that also has the same capacity to be self-fulfilling.

Yes you are right of course Julia .... My post was not meant to pessimistic; more frustration .....

My negativity (frustration) was channelled at anyone finding it necessary to make judgments on suicide victims without knowing anything about their state of mind or their life circumstances.


Ridiculing a suicide victim for their lack of consideration to others when they were likely in an altered state of despair and depression is a bit like telling a blind person to watch where they are going in my opinion.

This particular chap would have been suffering incredible despair. He may have also lost the respect/support of his Wife and Family, which would have been totally devastating ...... very unpleasant all round.

 

[burglar]

... when they were likely in an altered state of despair and depression is a bit like telling a blind person to watch where they are going ...

I agree.

Depression rewires the brain.
It turns you into someone else.






(Q. How do you upset a blind person?
A. You move their furniture!)

 

[craft]

My negativity (frustration) was channelled at anyone finding it necessary to make judgments on suicide victims without knowing anything about their state of mind or their life circumstances.


Ridiculing a suicide victim for their lack of consideration to others when they were likely in an altered state of despair and depression is a bit like telling a blind person to watch where they are going in my opinion.

This particular chap would have been suffering incredible despair. He may have also lost the respect/support of his Wife and Family, which would have been totally devastating ...... very unpleasant all round.

Those that would ridicule a suicide victim without walking a mile in that persons shoe must have psychological/ self esteem issues of their own that they are desperately compensating for. I Pity for them too.

...............................................

The brain is powerful enough to take action to kill its host, sometimes for unfathomable reasons, so acting on a bias against the share market would be a walk in the park – the basis of that bias could be minuscule; trivial even unrelated to the market but powerful enough to provide a lifetime of evasion.

So forget looking for rational reasons why people might be averse to the market and look at how the brain works – might find other things to help your own trading in the process.

 

[Julia]

Yes you are right of course Julia .... My post was not meant to pessimistic; more frustration .....

My negativity (frustration) was channelled at anyone finding it necessary to make judgments on suicide victims without knowing anything about their state of mind or their life circumstances.


Ridiculing a suicide victim for their lack of consideration to others when they were likely in an altered state of despair and depression is a bit like telling a blind person to watch where they are going in my opinion.

This particular chap would have been suffering incredible despair. He may have also lost the respect/support of his Wife and Family, which would have been totally devastating ...... very unpleasant all round.

Thanks for the clarification, barney. Sorry if I sounded terse. My frustration equals yours.

I can't think of anything much more demeaning to someone in such despair as to even be considering taking their own life than
1. being profferred some platitude like "cheer up, you've still got plenty to live for".
2. being accused of selfishness.

Having had two relatives who committed suicide, I know so well the torment and anguish they went through before finally finding the courage - out of desperation - to end their lives.

Probably we've said enough on this on this thread.

 

[Craton]

Actually my Dad has a complete hatred of the stock market.

Snap! My dad had this dislike too. He called himself conservative when it came to money. I learned over the years that he was risk averse. Bricks and mortar and cash ruled supreme in his mind.

He said the s/market was a lot of b/s and I never found out why he distrusted the s/market so much. Perhaps being born Italian in 1923, he would have remembered the tough Depression years and then the lead up to WWII (Musollini was one person he hated with a passion), maybe it was his ignorance of the machinations of the s/market here in Oz or he'd lost money, dunno but anytime I spoke to him about investing in a stock say like BHP, his venom on all subjects relating to stocks was palpable and literally a taboo subject that I could never discuss with him.

Mom? Nope, dad managed all finances in our household (typical head of the family stuff) and she was given X amount for bills and groceries and now he's gone, guess who's looking after mom's finances...

Man, I'm so glad I didn't allow my dad's bias to cloud my own journey of financial "discovery".

 

[burglar]

... Man, I'm so glad I didn't allow my dad's bias to cloud my own journey of financial "discovery".

My dad's bias drove me!
My mom's fear made me fearless!!

 

[Smurf1976]

He said the s/market was a lot of b/s and I never found out why he distrusted the s/market so much. Perhaps being born Italian in 1923, he would have remembered the tough Depression years and then the lead up to WWII

Influences at that age tend to stay with someone for life. Not much more can be said on that really, if someone grows up amidst chaos and is of the understanding, for whatever reason either wrong or right, that the stock market is part or all of the cause of their troubles then they'll be unlikely to ever willingly go near it as an adult.

It's the same with anything really. Once bitten, twice shy. Reading about history is one thing, living through it is entirely different. Just like people will live unhealthy lifestyles etc and ignore all advice and experience of others.

Personally, I grew up amidst difficult financial circumstances. Not depression era stuff, but difficult nonetheless. Suffice to say that I've never had a problem saving money as an adult, not once, and the prospect of not having an income is very firmly wired into my brain. I'm not an outright miser, but you'll never likely convince me that throwing money away at an actual casino is in some way fun or entertaining. It's just wired into my brain really, don't throw money around for the sake of it. Either get something of value for it or just keep the money. I doubt that will ever go away as long as I live.

 

[Craton]

Adding to that Smurf1976, I'd agree about the wiring but a willingness for self discovery and a willingness to change can rewire that predominance/preset.

I would also suggest the social mindset was a lot different back then too. Dad certainly wasn't one for rocking the boat. Me, on the other hand...

 

[barney]

Thanks for the clarification, barney. Sorry if I sounded terse. My frustration equals yours.

Probably we've said enough on this on this thread.

All good Julia

Snap! My dad had this dislike too.

Nope, dad managed all finances in our household (typical head of the family stuff) and she was given X amount for bills and groceries and now he's gone, guess who's looking after mom's finances...

Double SNAP lol ...... Must have been the era they grew up in.

My old man is still alive, but unlike the old days he "lets" Mum have her own Bank Account ... She is not very tech savvy, but boy she learned how to withdraw money from an automatic teller pretty quick... go Mum

I think what causes a lot of negative bias in the market is the perceived subterfuge and dodgy deals swung by those "in the know". Of course there is no such thing as Insider trading though, so people's fears are unfounded

 

[aBadTrader]

All good Julia



Double SNAP lol ...... Must have been the era they grew up in.

My old man is still alive, but unlike the old days he "lets" Mum have her own Bank Account ... She is not very tech savvy, but boy she learned how to withdraw money from an automatic teller pretty quick... go Mum

I think what causes a lot of negative bias in the market is the perceived subterfuge and dodgy deals swung by those "in the know". Of course there is no such thing as Insider trading though, so people's fears are unfounded

Haha - I had to comment on this post because it made me Laugh Out Loud - reminded me of my Mum. Go mum indeed!

(thinking back to the days where I had to teach her how to use eBay... Shudder)