It is harder to pick stock winners than you may think from perusing the financial media. Yes, everyone believes they can, but after all the effort, how many successful picks can you really find?
You hear about big stock winners but how many securities lottery winners are available? How many are recognizable early on? It’s always easy to find those who did well-- after the fact.
Furthermore, when you look at these relatively small numbers of winners, you find that they had their periods of struggle. The profit numbers look excellent only after years of market ups and downs. How many investors had the stomach to buy those stocks at their lows and hold on to them to their highs?
None of the successful securities had gone up in a straight line. Most hit bad cycles when the original holders deserted ship and sold.
Market psychology is always a serious factor that dictates the lack of discipline required of investors. Most take what profits they see on the way up, and run. So the odds of achieving huge winnings are even steeper.(See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)
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