Remember how you meet some one, and like them or dislike them initially and with time the experience is different and then opinions change! So, first impression - definitely NOT - the last impression.
However the same principle seldom applies to stock investing. A beginner investor in a stock market is highly driven by the initial experience. An early profiteer is sucked into the world of investing and rationale seldom precedes stock buying – the stock market becomes the holy grail of making money. On the other hand a loss in the initial investment and one could be driven away from stocks for life – Once bitten always shy. However most interestingly majority of the people are driven towards the world of investing when things are looking up and the market is in a bull run. That’s the human psychology and seeing peers and other investors’ profit from the soaring markets – an economy witnesses a huge influx of new investors. Sadly though this happens to the very peak of an economic cycle. So, 90% of the new investors see initial profits – turn into perennial bulls and then stare down the barrel of perennial losses.
(This is not an investment advice column or blog – please seek professional investing advice somewhere else :). I would recommend Lance Roberts of StreetTalk Advisors.
Footnote:
Did anyone invest in BP lately???
BP - BP plc (ADR) (NYSE)
41.92 +0.40 (0.96%) Oct 8 4:00pm ET
41.99 +0.07 (0.17%) After Hours
Open: 41.50
High: 41.98
Low: 41.40
Volume: 5,998,836
Avg Vol: 9,790,000
Mkt Cap: 131.29B
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