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The Gift of Psychological Drive in the Stock Market
The Jewish tribe has an interesting factor that has helped them become spectacularly financially successful. I call it “the gift of psychological drive to prove something.” The Jewish tribe has considered itself chosen by God and oppressed by man at the same time (I contend that every ethnicity has been oppressed by man at some time or other but that is another story).
How in the heck has this helped the Jewish ethnicity progress you might ask? Well if you always feel like the underdog you have two choices. The first is to tuck your tail, give up, and hide. The other choice is to “toe the line” and work harder than other ethnicities in areas that are most likely to prove people wrong like education, professional trades, and as entrepreneurs. Steven Silbiger in his book “The Jewish Phenomenon” points to this aspect of the Jewish ethnicity that has allowed Jews to post spectacular financial and intellectual achievements as compared to other ethnicities on average.
You can use this psychological secret to your advantage as a stock market investor. Wall Street wants you to believe that you cannot (1) manage your own stock investments, (2) cannot pick your own stocks, and (3) cannot beat at their own game their “professional money managers.” They project this on you because they want control your money for a hefty fee. You can learn to “toe the line” by dedicating yourself to an organized path of personal study in the field of investing. A chip on your shoulder to prove Wall Street wrong doesn’t hurt to motivate you to study hard.
Study a major area of investing. Examples are Dow dividend strategies. Momentum strategies, value investing, long term technical analysis. Some of the better people out there to read about include, Warren Buffet, George Soros, and William O’Neill. The key point to remember is to be in a constant state of open minded joyful study. This allows you to eventually learn most of what is out there and find just the right investing style for you. The right style makes the most sense to you and is the most comfortable way for you to invest based on your psychology.
I personally know of a marine welder who retired a multi millionaire because he drove himself in his free time to master his understanding of the stock market. Another example is a family friend who is now a wealthy and retired beautician who invested her savings and those of her high school principal coach husband’s in no load mutual funds, the very simplest of al strategies. They are now retired millionaires as well.
The only thing holding you back from fantastic success in the stock market is your own beliefs about yourself. Change your beliefs to an “I can too!” philosophy and you will change your reality. Today I was buying a bunch of tacos at Taco Bell. The cashier told me that I should play the state lottery with the numbers that came up on as the food price total. I looked her calmly in the eye, smiled, and remarked, “My dear why would I play the lottery when I have the stock market which truly is a much surer bet?”
About the Author: Scott Brown, Ph.D. a.k.a. “The Wallet Doctor” holds a doctorate in finance from the University of South Carolina and is a professor of finance at the University of Puerto Rico. Dr. Brown can teach you how saving the daily price of a cup of coffee at Starbucks can make you a millionaire in the stock market through long term stock investing. Dr. Brown's website is: http://www.walletdoctor.com/