How On-Line Investing Addictions Take Root

How On-Line Investing Addictions Take Root

    by: Brendan Magee

I log on to the internet and one of the first headlines I read is, "The Death of Blue Chips." I click on the the link and the next headline reads. "Are Penny Stocks Better Than Blue Chips?" I read on and the article lists and gives detail as to why penny stocks could be better for investors than blue chip stocks. Among the reasons are:

-Penny Stocks are cheaper than blue chip stocks. As opposed to buying expensive stocks like Apple, an investor could by a penny stock for less than a dollar and  with all the shares you could buy for example a stock priced at $.30 if that rose to just a dollar a share. You could just imagine the profit potential.

-Massive return potential in hours if not days. "If you are subscribed to the right newsletter you gain the potential of penny stocks on the verge of exploding." Do research and you will see that it is not uncommon for a stock to double and even triple in just 24 hours. 

Don't these reasons remind you a lot about the buses that would come  get the senior citizens and take them to the casinos to play the slot machines or the advertisements to play the lottery? They are both cheap and imply the same level of cheap fun along with massive return potential?

Reading the article a little further and the right newsletter as mentioned above is the BioScience Report and you can subscribe for free. All you have to give when you register is your e-mail address. When you subscribe you will even be given their latest stock pick which their subscribers have already made thousands of dollars in profits on. Click on the link to get started it states.

Cheap stocks with massive potential along with a free source of stocks that are expected to make you thousands of dollars in returns. How can you afford not to register? How could it hurt?

The answer is plenty. No doubt the idea of doubling or tripling your money in 24 hours is appealing. The idea of getting hot stock picks for free is also a winner. It's enough to make a person lose their senses which is what the newsletter is hoping enough people do. Once they do, the hook has been set and sane people will begin to see destructive behavior as prudent.

No one knows in advance which stocks will be the winners or the losers, absolutely no one. If they did, they sure aren't telling you for free. Forecasting winners or losers is pure speculation/gambling, not investing.

Massive return potential also means massive loss potential. That is not something the publishers of this newsletter want you to get a whiff of. What they want you to start doing is plying the investment game according to their rules. Just start playing.

If you hit a winner you are most likely going to keep playing. If you lose a little money you will most likely want to keep playing until you have at least gotten your money back. None the less you keep playing, putting more and more of your money on the table hoping the dice come up your way. Feel  the excitement, the rush of adrenaline and after a while your brain starts to crave the rush. Bang! You are addicted! No different than the guy who drinks too much, eats too much, snorts too much, or gambles too much.

So how do you not get addicted? Do not start at all. See these behaviors for exactly what they are, destructive. Stay engaged in a conversation for prudent investing. Know that all available information is already factored in the price of stocks. Only unknowable and unpredictable information will move the price of stocks. Get also, that the attempts to get you to engage in destructive behavior will not stop. They will keep coming 24, 7, 365. They will be appealing and seem harmless. Your victory is not engaging at all.

Brendan Magee is the founder and president of Inevitable Wealth Coaching. with questions or comments e-mail brendan@coachgee.com or call 610-446-4322.