Market Thoughts : Emotional Blackmail

Many great minds have said that Altruism is what 

separates us human beings, from Animals.

Today I would like to talk about Emotional Blackmail in stocks.

This is something very common among today's traders. 

And this happens when you are unable to follow your own trading

 plan on a specific stock, because of fear of relationship sabotage

 - between you and the person or people you have engaged 

with on the particular stock. 

For example:

Karding and I are friends. We bought FNI at 2.5 because at 

that time we both believed It was a good buy. Several weeks later,

 the stock slides down to 2.4. Karding says 

"I'll hold kasi surebol dobol to this 2015."

Because Karding and I are friends, I decide to disregard my trading

 rules and hold. A few months later and I find myself ipit at 

the 1.90s with considerable losses.

I do not regret the decision because I believe that by holding 

the stuck, I have kept our friendship bond strong.

Like a group of ants sinking...

And dying together.

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Emotional blackmail can also be that you harbor strong feelings of

 loyalty to a person that when you sell the stock the person 

says he or she has, you regard this as an act 

of betrayal towards that person.

For Example:

Ernie is a respectable guru. He has one of the best market

 insights and most of his stock picks go up considerably.

One day, I decided to buy FED at 16. A few days later, 

it rose up to 24 and instead of selling, I decided to hold 

because Ernie said

"LBC will backdoor and the chart is good. 

Not to mention the forward earnings of the company.

Sit Tight!"

A few weeks later, FED died and went back to 15. You hold

 despite the loss because you just cannot betray your guru and

 believe that your loyalty will be rewarded.

Like a small male spider attempting to mate 

with a big female black widow. 

You just don't know if it's worth it in the end.

----------------------------------------------------

But the worst kind of Emotional Blackmail is the one 

that does not spring forth out of Altruism.

One that is deliberate.

Example:

I am a guru or a very influencial person. I have many followers. 

I shall buy a stock and after I have had my fill, I will hype 

with all kinds of crap. I will sell and tell them I am still 

holding even though I am not. 

Why? 

"Because my followers love me."

Like The Assassin Bug that uses the bodies of its victims 

as camouflage and at the same time a trophy to attract 

other bugs and victims.

Always remember that in our markets,

 It's eat or be eaten.

So keep things professional. Because by the end of the day, 

your port is yours alone - not your friend's, and 

definitely not your guru's.