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9/28/2016 WhyPeopleLoseMoneyinStocks:CycleofEmotionsinTradingPinoyMoneyTalk.com

October2015

Why People Lose Bakit


mayaman
Money in Stocks: angibapero
ikawhindi?

Cycle of Emotions Gustomo'ngmalamanang5


SecretsngFinanciallyFree

in Trading
Pinoys?Justfilloutyourname
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andemailaddressbelow.

FirstName:
JUL 17, 2013 by PINOYMONEYTALK in STOCK TRADING
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9/28/2016 WhyPeopleLoseMoneyinStocks:CycleofEmotionsinTradingPinoyMoneyTalk.com

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Theaveragepersonbecomesastockmarket
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Youllknowweareinthisoptimisticstagewhen FINANCE

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http://www.pinoymoneytalk.com/emotionalcycleininvesting/ 3/13
9/28/2016 WhyPeopleLoseMoneyinStocks:CycleofEmotionsinTradingPinoyMoneyTalk.com
justonereport)insertsegmentsaboutstock be nancially
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Money in Stocks:
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Market Surge phase: Optimism


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9/28/2016 WhyPeopleLoseMoneyinStocks:CycleofEmotionsinTradingPinoyMoneyTalk.com

Inthisphase,almosteveryoneisoptimistic Bakit
mayaman
becauseallstockpickshavebeengoodpicks, angibapero
generatingconsistentreturnsmonthaftermonth. ikawhindi?
Itseemsstocklossesarearareoccurrence. Gustomo'ngmalamanang5
SecretsngFinanciallyFree
Pinoys?Justfilloutyourname
DuringMarketSurge,stockpricescontinueto andemailaddressbelow.
rise,andtheaverageinvestorstartstobelievehe
FirstName:
isaninfalliblestockinvestor.Indeed,almostall
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hispickshavemadehimmoneyandtohis Email:
surprise,eventhosestocksandcompanieshe
IWANTTOKNOW!
hasnotheardofhavebeenproducingenticing
returns. Werespectyourprivacyandwillneverspamyou!

Hethenstartstalkingaboutstockinvestingto
friends,family,practicallyeveryonebragging
aboutastockthathasgivenhim20%injusta
fewweekstimeandanotherthathasearnedhim
100%injustayearstime.

Thissenseofoptimismbecomescontagiousand
morepeopleareenticedtojointhestockmarket
becauseIdontwanttobeleftbehind.Those
whodonotevenunderstandwhatstocksareand
howthestockmarketworksbecomeinstant
investorsandthenextdaystarttalkinglikestock
marketexpertsgivingtheirownstocksanalysis
andtradingadvice.
http://www.pinoymoneytalk.com/emotionalcycleininvesting/ 5/13
9/28/2016 WhyPeopleLoseMoneyinStocks:CycleofEmotionsinTradingPinoyMoneyTalk.com

Market Peak phase: Euphoria

ThencomestheMarketPeakstage.Duringthis
phase,stockpricesreachunprecedentedlevels
andstockmarketsachievealltimehighs.

Everyonesenjoyingthepartyandeuphoria
dominatesthemarket.Newandoldstock
investorsalikearemakingalotofmoney,and
INVEST SAVE EARN PMT FORUM regardlessofthestocktheybuy,itseemsthey
PINOYINVESTOR PMT ON FACEBOOK ABOUT PMT
havestruckgold.Yes,includingthosestocks
generallyconsideredjunkorspeculative.

Investorsarelulledbytheirunfailingstockpick
prowess,andeventhosewhojustjoinedthe
marketweeksormonthsagobuystockshereand
thereasiftheyrejustbuyingnewshoesor
clothes.Hypedbystockmarketanalysts
proclaimingthatnewhighsarecoming,investors
keeponbuyingstocksbecauseEverythings
goingupandwillstillbeupinthefuture.

Market Decline phase: Fear

Andthen,pricesstartfalling.Abrandnewsetof
analystswouldemergesayingstockpricesare
inflatedandthatthestockmarketisovervalued.

http://www.pinoymoneytalk.com/emotionalcycleininvesting/ 6/13
9/28/2016 WhyPeopleLoseMoneyinStocks:CycleofEmotionsinTradingPinoyMoneyTalk.com

Rationalitystartstoreturninthemarkets,and
thosewhorealizetheyhavepaidalotforastock
thatisjunkstartsdumpingthesestocks.Investors
whomerelytakecuesfromlargeinstitutional
brokersfollowsuit,sellingstockshereandthere.

Retailinvestors,stillreelingfromtheeuphoric
partyinthepreviousstage,donotseemto
understandwhatsgoingon.Mostofthemcannot
believethepartymaybeover.Andyettheyfollow
INVEST SAVE EARN PMT FORUM theherdandstartunloadingtheirportfoliotoo
PINOYINVESTOR PMT ON FACEBOOK ABOUT PMT
sometimesevenataloss.

Youllthennoticethatduringthisstage,the
conversationsaboutstockmarketshavestarted
todecline.Gonearethedaytodayupdatesand
stocksanalysisofsocalledstockgurus.News
programshavemovedbacktoreportingpolitics
andentertainment.Andyourfriendwhohas
previouslybraggedabouthishugeearningsin
thisandthatstockhassuddenlygonequiet.

Butthedarkdaysarenotyetover.

Market Bottom phase: Panic

Themarketcontinuesitsslideandreachesa
bottomnotseenbyinvestorswhorecentlyjoined
themarket.Priceshavedroppedtoverylow
http://www.pinoymoneytalk.com/emotionalcycleininvesting/ 7/13
9/28/2016 WhyPeopleLoseMoneyinStocks:CycleofEmotionsinTradingPinoyMoneyTalk.com

levels,creatingpanicespeciallyamongnewbie
investorswhoarenowstuckwithdoubledigit
lossesinstockstheyjustboughtweeksago.

Blogs,forums,andFacebookdiscussiongroups,
amongothers,arenowdominatedbypostsof
membersaskingWhatdoIdonow?Andyet,
mostoftheexpertsandguruswhoparaded
themselvesduringtheMarketSurgephasehave
disappearedorhavegonequiet.

INVEST SAVE EARN PMT FORUM PINOYINVESTOR PMT ON FACEBOOK ABOUT PMT
Newbieinvestorsdecidetotakecuesfrom
movementsinthestockmarketandseeingthat
Sell!Sell!Sell!seemstobethedominant
mantra,arelefttomakeaconvenientalbeit
painfuldecision:thatis,tosellatahugeloss.

Thisgloomyatmospheredragsonforyears,and
severalinvestorsrealizestockmarketinvestingis
notforthem.Theyreturntotheirnormallives,
withadecisiontopermanentlyshunawayfrom
stocktrading.

Andwethoughtitsover.Butthen,yearslater,the
marketpicksupagain,pricesstartrisingand
investorsrealize:theMarketSurgephaseis
back.

Thecyclehasgonefullcircleandanewsetof
investorswilljointhecycle.Inthisnextround,we
http://www.pinoymoneytalk.com/emotionalcycleininvesting/ 8/13
9/28/2016 WhyPeopleLoseMoneyinStocks:CycleofEmotionsinTradingPinoyMoneyTalk.com

justhope,stockinvestorswouldknowhowtobe
ontopoftheCycleofEmotionsinTrading.

Readtheseotherrelated,usefularticles:

WarrenBuffetsBestQuotesonStocksand
Investing
TheEmotionalCycleofStockInvesting
PrimerandTutorialonStockTrading
FREEStockPicks,TargetPricesandBroker
INVEST SAVE EARN PMT FORUM PINOYINVESTOR PMT ON FACEBOOK ABOUT PMT
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Taggedwith:behavioralinvesting,cycleofemotions,emotional
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Jointhediscussion

Letsked2yearsago
ThatiswhysomecountriesspeciallyinUSusesuperfast
computerstotradeandthepeopleworkingtherearejustto
maintainthecomputersandtocreatenewalgorithmsfor
certaintradingscenarios.
Reply Share
http://www.pinoymoneytalk.com/emotionalcycleininvesting/ 10/13
9/28/2016 WhyPeopleLoseMoneyinStocks:CycleofEmotionsinTradingPinoyMoneyTalk.com
Reply Share

florsan3yearsago
thankyousomuchguysfortheinspirationalideasyou've
shared!ihopemaramipaakongmatutunancoziamso
interestedandidobelieveinvestinginoneoftechniquesto
getgrowyourpinaghirapangpera!....
Reply Share

PhilippinesNewsLatestUpdate3yearsago
Investoneducationfirst.Readmorearticleslikethis
beforejumpingon.
1 Reply Share

mae3yearsago

INVEST SAVE EARN PMT FORUM urright..butimcuriousiftheresanyoneexpertonthis?


PINOYINVESTOR PMT ON FACEBOOK ABOUT PMT
Reply Share

James|PinoyMoneyTalk.com Mod >mae


3yearsago
Hi@mae,nooneisanexpertinthestockmarket.
Bewarywhensomeonemakethatclaim.Even
WarrenBuffett,arguablythebestindividualwho
hasmadealotofmoneyinthestockmarket,
makesseveraltradingmistakesonceinawhile,
andhehasneverclaimedheknowsthestock
marketsowell.Sodon'ttrustpeoplewhosaythey
are"experts"instockinvesting.
1 Reply Share

Letsked>James|PinoyMoneyTalk.com
2yearsago
Hi@James|PinoyMoneyTalk.com,sa
opinionkopo.Anyonecanbeanexperton
daytradingorinvesting.Butnoonecanwin
allthetimeandneverloseinthemarket.So
in@maecase,tinginkopomaymga
expertsdin.AndMr.WarrenBuffetformeis
anexpert,he'sanexpertoninvestinglong
term.Throughpractice,longhoursofwork,
research,failures,challengesandmore.He
becameanexpertonwhatheunderstand
themostandtheresultwasbeingoneofthe
http://www.pinoymoneytalk.com/emotionalcycleininvesting/ richestperson.Galingno? 11/13
9/28/2016 WhyPeopleLoseMoneyinStocks:CycleofEmotionsinTradingPinoyMoneyTalk.com
richestperson.Galingno?

Butyourrightregardingwithpeoplewho
proclaimstheiranexpert,someofthemare
justpromotersormoneyburningmachine.
Sobeawareofthem.
Reply Share

flamingids>James|
PinoyMoneyTalk.com 3yearsago
iagree.thereisno100%inthismarket.
whatyoucandoisresearchtechnicaland
fundamentalanalysistoreducetheriskof
losing...Ihaveyettostudyandhopefully
findsuccessinstocks
Reply Share
INVEST SAVE EARN PMT FORUM PINOYINVESTOR PMT ON FACEBOOK ABOUT PMT
SofiaMarket3yearsago
Thisarticleiscorrectwhenitsaysitisacyclethatis
exactlywhy
ExpertsandGurusarealwayspreachingto"INVEST
LONGTERM"on
reputablecompanieswithverygoodfundamentals,AND
makesureyouhave
EMERGENCYFUNDSbecausesuchcycledoexist(you
don'twanttobesellingatatimeofemergencywhenthe
cycleisatitsdeclinestage).TIMEisyourbestfriendin
stockinvesting.Think2030yearsfromnowwhat
happenstoyourmoney
whenyou'veamassedplentyofsharesinvestingin
companieswithvery
goodfundamentals(i.e.withprojectedhighgrowthoverthe
years).Cometime
youwanttocashoutsomeofyourchunksharesjust
makesureitsona
"EuphoricPhase".Likewhat'smentionedinthisarticleitis
aCycle
thereforestageofEuphoriawillalwayscome.That'syour
queuewhenyou
sell(youdon'thavetobeanexperttofigurethatout).
Thereare
riskyes,butwhichinvestmenthasn't.Ifthereisonethat
claimstobe
riskfreethenthatisnothingbutaSCAM.Theproblemwith
http://www.pinoymoneytalk.com/emotionalcycleininvesting/ 12/13
9/28/2016 WhyPeopleLoseMoneyinStocks:CycleofEmotionsinTradingPinoyMoneyTalk.com
riskfreethenthatisnothingbutaSCAM.Theproblemwith
ourcountry
iswelackthepropereducationaboutstockinvestingand
wearein
generalsoignorantaboutthisinvestmentoption,yetalot
ofuswould
jumpintothefalseideologyofgeteasyrichschemeslike
pyramid
marketing,inaheartbeat.Stockinvestinghasbeenproven
overthe
yearsasalegitwaytoinvestmoneyandgrow,byhighly
industrialized
countries.Allweneedistotaketimeinunderstandingits
basicsandPATIENCE.
11 Reply Share

INVEST SAVE EARN PMT FORUM PINOYINVESTOR PMT ON FACEBOOK ABOUT PMT
florsan>SofiaMarket3yearsago
iextremelyagreeonthat...lackofknowledge
further
Reply Share

James|PinoyMoneyTalk.com Mod >Sofia


Market 3yearsago

Iagree,@SofiaMarket.Youraisedverygood

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