Go to Jeff Salisbury LWGate Home Page.From: "Katherine Malm" <kmalm@earthlink.net>
Subject: [CANSLIM] Re: RAPIDS was (Off topic: politics/judgmentalism)
Date: Mon, 8 Jul 2002 09:05:05 -0500
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This is a multi-part message in MIME format. - ------=_NextPart_000_0169_01C2265E.8CC817A0 Content-Type: text/plain; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable Here's an apropos article from this week's "Stock Trader's Almanac = 2002"... - --Katherine =3D=3D=3D=3D=3D Changing Negative Investor Behavior "Investigate, before you invest" has always been good advice for novice = investors. A more important slogan would be, "Investigate yourself, = before you invest." Investing one's life savings in stocks, in competition with hundreds of = thousands of professionals and many millions of investors around the = world, can be very stressful. To be successful you have to understand = the kind of person you are and the amount of risk you can manage. It's = also wise to itemize the investment decisions you make and to learn from = the bad ones. For, [as the saying goes] "If you don't profit from your = investment mistakes, someone else will." The mark of professional investors and traders is discipline, which = means controlling your emotions and how you react to events and = movements in individual stocks, or the market as a whole. James W. Gottfurcht, PhD, the president of Psychology of Money = Consultants in Los Angeles, has identified six money traps that = investors often fall into, and he cautions, "Beware of the RAPIDS." Rationalization: Trying to explain away bad situations, such as a big = tech-stock drop, rather than changing behavior. Avoidance: Delaying actions, like selling a plummeting stock that has = little chance of recovering--a trap that can turn losses into greater = losses. Projection of blame: Blaming someone else for bad financial choices, = like lousy timing on buying stocks that later tank. Idealization: Putting too much faith in something, like a particular = stock or charismatic financial guru. Denial: Blocking out upsetting facts, like the market plunge, which = could lead to making risky decisions about future stock purchases. Splitting: Suddenly taking a totally negative attitude, like deciding = never to participate in the stock market again after suffering a big = loss. Try to honestly appraise your behavior as an investor and take steps to = modify any attitudes that can be deleterious to your wealth. You must do = it, no one else can do it for you. Your future and your fortune may = depend on it. ----- Original Message -----=20 From: Cefaloni, John L Jr. [AMSTA-AR-WEA]=20 To: 'canslim@lists.xmission.com'=20 Sent: Monday, July 08, 2002 8:45 AM Subject: RE: [CANSLIM] Off topic: politics/judgmentalism I'd rather talk about politics! -----Original Message----- From: David Taggart [mailto:dctag@mavericktrading.com] Sent: Monday, July 08, 2002 9:43 AM To: canslim@lists.xmission.com Subject: RE: [CANSLIM] Off topic: politics/judgmentalism So how about those stocks? :-) - ------=_NextPart_000_0169_01C2265E.8CC817A0 Content-Type: text/html; charset="iso-8859-1" Content-Transfer-Encoding: quoted-printable <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=3DContent-Type content=3D"text/html; = charset=3Diso-8859-1"> <META content=3D"MSHTML 6.00.2716.2200" name=3DGENERATOR> <STYLE></STYLE> </HEAD> <BODY bgColor=3D#ffffff> <DIV>Here's an apropos article from this week's "Stock Trader's Almanac=20 2002"...</DIV> <DIV> </DIV> <DIV>--Katherine</DIV> <DIV> </DIV> <DIV>=3D=3D=3D=3D=3D</DIV> <DIV> </DIV> <DIV><EM>Changing Negative Investor Behavior</EM></DIV> <DIV> </DIV> <DIV>"Investigate, before you invest" has always been good advice for = novice=20 investors. A more important slogan would be, "Investigate yourself, = before you=20 invest."</DIV> <DIV> </DIV> <DIV>Investing one's life savings in stocks, in competition with = hundreds of=20 thousands of professionals and many millions of investors around the = world, can=20 be very stressful. To be successful you have to understand the kind of = person=20 you are and the amount of risk you can manage. It's also wise to itemize = the=20 investment decisions you make and to learn from the bad ones. For, [as = the=20 saying goes] "If you don't profit from your investment mistakes, someone = else=20 will."</DIV> <DIV> </DIV> <DIV>The mark of professional investors and traders is = <EM>discipline</EM>,=20 which means controlling your emotions and how you react to events and = movements=20 in individual stocks, or the market as a whole.</DIV> <DIV> </DIV> <DIV>James W. Gottfurcht, PhD, the president of Psychology of Money = Consultants=20 in Los Angeles, has identified six money traps that investors often fall = into,=20 and he cautions, "Beware of the RAPIDS."</DIV> <DIV> </DIV> <DIV><STRONG><FONT size=3D5>R</FONT></STRONG>ationalization: Trying to = explain=20 away bad situations, such as a big tech-stock drop, rather than changing = behavior.</DIV> <DIV><STRONG><FONT size=3D5>A</FONT></STRONG>voidance: Delaying actions, = like=20 selling a plummeting stock that has little chance of recovering--a trap = that can=20 turn losses into greater losses.</DIV> <DIV><FONT size=3D5><STRONG>P</STRONG></FONT>rojection of blame: Blaming = someone=20 else for bad financial choices, like lousy timing on buying stocks that = later=20 tank.</DIV> <DIV><FONT size=3D5><STRONG>I</STRONG></FONT>dealization: Putting too = much faith=20 in something, like a particular stock or charismatic financial = guru.</DIV> <DIV><FONT size=3D5><STRONG>D</STRONG></FONT>enial: Blocking out = upsetting facts,=20 like the market plunge, which could lead to making risky decisions about = future=20 stock purchases.</DIV> <DIV><FONT size=3D5><STRONG>S</STRONG></FONT>plitting: Suddenly taking a = totally=20 negative attitude, like deciding never to participate in the stock = market again=20 after suffering a big loss.</DIV> <DIV> </DIV> <DIV>Try to honestly appraise your behavior as an investor and take = steps to=20 modify any attitudes that can be deleterious to your wealth. You must do = it, no=20 one else can do it for you. Your future and your fortune may depend on = it.</DIV> <BLOCKQUOTE=20 style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; = BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px"> <DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV> <DIV=20 style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: = black"><B>From:</B>=20 <A title=3Djohn.cefaloni@us.army.mil=20 href=3D"mailto:john.cefaloni@us.army.mil">Cefaloni, John L Jr.=20 [AMSTA-AR-WEA]</A> </DIV> <DIV style=3D"FONT: 10pt arial"><B>To:</B> <A = title=3Dcanslim@lists.xmission.com=20 = href=3D"mailto:'canslim@lists.xmission.com'">'canslim@lists.xmission.com'= </A>=20 </DIV> <DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Monday, July 08, 2002 = 8:45 AM</DIV> <DIV style=3D"FONT: 10pt arial"><B>Subject:</B> RE: [CANSLIM] Off = topic:=20 politics/judgmentalism</DIV> <DIV><BR></DIV>I'd rather talk about politics!<BR><BR>-----Original=20 Message-----<BR>From: David Taggart=20 [mailto:dctag@mavericktrading.com]<BR>Sent: Monday, July 08, 2002 9:43 = AM<BR>To: <A=20 = href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>= <BR>Subject:=20 RE: [CANSLIM] Off topic: politics/judgmentalism<BR><BR><BR>So how = about those=20 stocks? :-)</BLOCKQUOTE></BODY></HTML> - ------=_NextPart_000_0169_01C2265E.8CC817A0-- - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". 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