In the stock
market and in any other business or industry market, there is the bull, the
bear and the pig. Bullish outlooks mean a positive attitude towards trends
despite economic implications. A Bearish outlook means a negative attitude.
These two investors’ outlooks will signify their actions towards their
investments with proper knowledge and analysis. But for the pig, it is all
about getting the best from the trend.
Investing
trends become popular especially when one investor’s outlook makes sense to the
other because of supported fact or a brief prediction of the future based on
current news and consumer perception. Pigs normally go with investing trends
without thought, simply thinking that the trend can make sure their investments
are safe, and can generate them money they deem to be enough.
Pigs normally
react with their investments based on certain rumours they find. Often, a tip
from another investor or an industry insider is enough to urge them to sell
their stocks as soon as possible, or buy the stocks of a downgraded firm
because it will pick up the pace in a few months.
They often
act with greed, without any consideration to the inherent value of certain details.
For example, since the smartphone boom fuelled the rise of Apple and other
technology companies on top of the grid, many pigs went to buy the stocks once
Apple’s stock value loosened out. However, how are they so sure smartphone
technologies are here to stay, and no distant replacement is yet to appear?
Avoid being the
pig when investing; never let greed cloud your judgment. According to research,
those who buy and hold their stocks, especially investors with a financial
plan, are the ones who gained higher profits in the previous few years.
