Wednesday, May 6, 2015

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.


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


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.



16 comments:

  1. I am just glad to be finally free from their shit.

    ReplyDelete
  2. Those who always play the victim will eventually become one. If they need your cautions before realizing how harsh it is in the market, then they don't belong there anyway.

    ReplyDelete
  3. The problem with others (and I hope the newbies read this) is that at the end of the day, you will be the only one responsible for yourself. Not generalizing the culture overall pero ang dami talagang tamad (which is reflected sa groups/forums na puro tanong at blind following lang ginagawa, FF mo mukha mo). So ano ngayon weapon mo as a newbie laban sa sharks and veterans ng market? Walang pinagkaiba dun sa quick rich mindset na nag susugal or nag mmulti-level marketing hehe.

    Realization and acceptance should come first, followed by the perseverance to help oneself and improve oneself. Otherwise mag UITF/MF ka nalang, ganun lang din pala ginagwa mo inaasa sa ibang tao kaso nga lang basura MF binubuo mo hehe.

    - Someone who lost friends because he bashed the gurus of his friends hehehe, gising na sana mga kaibigan :)

    ReplyDelete
  4. ..SUREBOL, LAMBAT, BOBO. Do this terms familiar to you?

    ReplyDelete
  5. Ang alam ko lang: BOBO = "Mga bobong sunud sunuran bilhin nyo na tong mga paninda ay este RECO ko"

    ReplyDelete
    Replies
    1. ANO PO IBIG SABHIN NG RECO

      Delete
  6. Malutong na putangina kila Tony Herbosa at Roy Reyes sa panloloko sa mga baguhang gusto lamang kumita sa stocks. Alam naman nila siguro kung saan ang punta ng mga mahilig kumain ng nakaw

    ReplyDelete
  7. and dko lang gets d naman kailangan mngago para lang manalo sa merkado... bkit kailangan pang merong isakripisyo... not just that famous groups but as well as those copy cats and wannabes.. and also ung mga naunang groups na nawala na o ngunder the radar na lang siguro... puede naman manalo ng walang inuuto... sa mga big investors naman karamihan tayo bumibili ng spoils of the market pg pinabagsak nila at kumikita tayo pgpinapataas naman nila... no need to dupe smalltime retail investors... kya alng imbedded na yata sa utak na kailangan may tirahin. pinoy mentality na naman.. imbes na tulungan ginugulangan...

    ReplyDelete
  8. Natawa ako dun sa Basura Mutual Fund wahaha, totoo kasi, pag nakita mo sa groups yung ibang nag rereklamo ng duguan na port, puro basura/3rd liners talaga yung hawak sa portfolio. Pang short term lang yung mga yun kids, pag long term mag legit Mutual Fund/UITF nalang nga kayo.

    Tama ka dyan Anonymous commenter, lalo na yung recent na issue nung sa PICZERS, scam kung scam eh. Yung ring leader na nila mismo nagsabi, 'gatasan natin mga PICZERS', labas ang personalidad eh. Just being real kasi dati din akong PICZER, sobrang olats nung desisyon ko na yun, buti natauhan ako agad at umalis.

    ReplyDelete
  9. Ano po yung PICZERS?

    ReplyDelete
  10. Yung grupo ng newbies na pineperahan ni RJ Cortez, nag delete na ata ng Facebook guilty eh, baka hulihin ng SEC. So babala lang po sa newbies, kung may iiwasan kayo na tao siya na, mas malala pa kesa sa ibang groups kasi lantaran yung sa kaniya. Isa nako sa mga OFW na nadale niyan. Eto malala, nag webinar kami dati kala ko kasi madami akong matutunan, ayun mas mabuti pa ata kung nagbasa nalang ako sa internet.

    ReplyDelete
  11. ^ Oh no! Salamat po sa reply. Para ngang nabasa ko na yang name na yan sa fb group na yun. Tsk tsk..kawawa naman yung ibang newbies na di pa informed sa ganyang strategy.

    ReplyDelete
  12. Anong group or forum yang kay RJ Cortez?

    ReplyDelete
  13. What is Ff? Newbie here.

    ReplyDelete
  14. The guru is a crap. Puro pakita ng party with beautiful ladies, expensive cars, meeting with ceo'd and his experiences as a guru. Sana wala na sila maloko. Mga alalays nya eh puro kwento din.

    ReplyDelete
  15. lesson sa mga newbies na mahilig mag basura stocks. dagdag sa tuition fee sa stock market. parang watak2x na mga guro's ngayun

    ReplyDelete