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Incompetence is Alluring
"People who look for easy money invariably pay for the privilege of proving conclusively that it cannot be found."
For the next few weeks, we will be using quotes from Edwin Lefevre and his masterpiece trading book, “Reminiscences of a Stock Operator.” Enjoy!
The Dunning-Kruger effect, in essence, is when those who are the least knowledgable about something, end up thinking they know the most.
It’s an interesting phenomena, and not one that should go without application here.
The reality is, in the stock market, we all want something. And, with the birth of social media, there is no shortage of stories about someone who we may perceive as being “unintelligent” making a fortune through sheer stupidity.
And, although this may work when taking a 1 out of 1000 chance at the market casino, the stories about this failing are even more abundant.
Edwin Lefevre, the master trader, says this:
“The sucker has always tried to get something for nothing, and the appeal in all booms is always frankly to the gambling instinct aroused by cupidity and spurred by a pervasive prosperity. People who look for easy money invariably pay for the privilege of proving conclusively that it cannot be found on this sordid earth.”
In reality, the question is, do we love stocks, the market, and trading?
For those that do, longevity and risk management will be the winning ticket.
For those that do not, another transfer of wealth from the poor to the rich will always be welcomed by those at the top.
If I could only make a decent living from the stock market, would I still be doing it?
What drives me? Where is my real passion in life?
Am I doing what I want to do in my life, or am I making decisions based on what I, or others, “think” I should be instead of what I have a passion for?
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