On top of financial news channels and websites, there are also hundreds, if not, thousands of, blogs, video channels and chat rooms/forums discussing about investment and trading in general. While most of these resources are informative, there are some which, put it mildly, trying hard to prove or disprove certain viewpoints. A healthy discussion/debate is constructive and learning points can be taken from them, but there exist participants where his/her convictions on certain opinions are so strong that he/she would commit most or all resources just to make a point.
Picture generated by Meta AI
Frankly, this “I will prove that I am right by (doing something)” existed way before the internet came about, or even newspapers and smoke signals. The propensity to prove correct one’s assumption/prediction is one of the basic human biases known as overconfidence. Amplified by the easy access to mass communication tools and means, it could also develop into stronger narcissistic tendencies, which includes the hyper-aversion to “loss of face”.
These traits and behaviours in the world of investing/trading are a definite no-no; yet, despite these basics, there were those who fell into such traps. With social media and the deemed credibility that comes with it, the negative impact of having a wrong outcome is very great. This is why mistakes are usually either glossed over, or defended with more vigorous “convictions”, to maintain the presumed invincible aura. When we are investing or trading, we are doing it for ourselves. When we are showing it the world, we are sharing the tools and tips so that we can learn from one another.
Borrowing a famous saying about fooling someones and everyones all the time or sometimes, I had modified it to the following:
We can be always right some of the time.
We can be sometimes right all the time.
But we cannot be always right all the time.
Remember the title of this blog post.
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