The Demagogue

"Leave them alone: they are blind leaders of the blind. 

And if the blind leadeth the blind, both will fall into the ditch."  

Matthew 15:14

It's been a week since I separated myself from the stock market. This is the first time I stopped trading since, well, I started trading. So I cope by reviewing my notes and by writing this blog.

But there are posts here and there that give me an idea of how the market is doing. It seems that only a handful of stocks offer good risk-reward ratios. And only a select few can find them.

Newbies get slaughtered in times like this. They get frustrated with how hard it is to get their ports green. When that happens, they seek for help and confirmation.

Most of them find refuge in the perfect words of a guy we'll call

"The Demagogue"

The demagogue advocates action without deliberation appealing directly to the emotions of the newbie, poor and uninformed. He tells lies to stir up hysteria where your emotions are so strong that you behave in an uncontrolled way. He exploits crises to intensify popular support for his calls. If you oppose his views, you'll be accused of disloyalty.

And the common people fall into his trap.

The demagogue is a leader who tries to get support by making false claims and promises during arguments based on emotion rather than reason.

In a sense, he's like this guy.

(Click Here for an awesome video)

If you're just starting out in trading,

You'll be amazed by how this guy minces words.

What better way to get introduced to the stock market world than to hear stories with metaphors, similes, idioms, and other figures of speech.

You'll read terms you haven't seen before.

You'll see projections in charts that are too good to be true.

You'll find target prices that pierce the heavens.

And once you fall under his spell by the grace of his tongue,

You'll take his calls.

You'll use his "strategy".

You'll picture yourself with gains that go far beyond what the market has to offer.

You'll be devoured by Greed.

"Baggers! Baggers everywhere! 10,000%!"

He'll tell you that a 20% drop in IMP is a BUY.

He'll say that two consecutive 12% drops in NOW is a loyalty check.

You try to reason out.

But he'll just say this while other spellbound victims watch.

"Iyakin!"

Then reality comes in and f*cks you in the face.

It was too late.

You're balls deep.

You've lost your hard-earned cash.

You've lost your life savings.

You've lost your retirement money.

But don't fret.

Afterall, it's only..

YEAR 1 of 10.