Today it is a different chapter, a little more thoughtful than economic where I talk about the alarming increase in trading during coronavirus.
It may seem strange what I will write in this post but believe me, after reading it you will do your reflections. I invite you to visit the Google www.trends.google.com site and enter these search terms such as:
- Stock market
- Wall Street
you will see on the chart the peaks of March 2020, when financial markets collapsed as at the time of 1929’s crisis.
Who has searched for these keywords, certainly not the professionals or those who trade every day, but they are the most vulnerable and frightened people, translated into my “language” the less informed (and who held up the pressure).
Knowing how to manage pressure, emotions and money management are the first words that you should learn, but that often you do not teach or talk about little.
Who knows why the fundamentals are dealt with in a chapter or a few lines, now you will understand why 70/80% of people who trade lose money?
Proof of what I’m saying, look at the exponential growth in volumes traded in March, too many investors and savers have conditioned market trends, pushing volatility (Vix) to impressive levels.
According to some data in the first 6 months of 2020, number of financial transactions increased by 85%, of course having to stay at home helped this process, question: who invested was profitable?
I’m not so sure, despite the “doping” of central banks, I think many small savers have been “drugged” by the constant advertising of trading platforms, media scaremongering and web’s communities.
Ah yes, I forgot about all those “characters” who sold trading courses (as never seen in recent years) or magic formulas to give dreams to customers.
From my experience, few are the real coaches who can teach a method, unfortunately around the world there are so many people who sell smoke (All Show and no Go) taking advantage of weaknesses and ignorance.
My advice, if you want to invest your savings is to close the channels of the “gurus” on Youtube and start reading books of technical analysis, the most important names are: Martin Pring, John J. Murphy and I strongly recommend Alexander Elder.
This is a job not a game as the media, social networks or Youtube make you believe that in a few clicks you can earn millions of dollars.
Be careful from those who sell magic formulas or magic methods, I end with a question: if you had the miraculous recipe you would sell it on the internet and at how many dollars?