Ex-lawyer turned relationship coach

The Problem With Investing

No other environment is as kind to beginners as the stock market. You don’t need credentials, prior experience, training, or even the ability to read. All you need is cash and access to the market.

The weirdest thing? Despite their lack of skill, novices can still get it right and succeed. Big time. 

No other trade offers similar odds.

If you’ve never done any plastering, the probability you’ll end up with a smooth wall is zero. The same applies to first-timers flying a plane, designing a bridge, or reconstructing someone’s broken spine. It’ll end in disaster.

But with enough luck, newbie Noah can outperform an Ivy league stockbroker with over two decades of experience. 

Surprising yet true. This is how endless people get fooled into thinking they’re good at investing and lose everything. They have no talent or skill, only luck.

The problem with investing isn’t just that we overlook the importance of chance, it’s that we overestimate what we know about finance.

Although money has been around for thousands of years, the concept of investing money is relatively new. 

Index trackers, hedge funds, retirement savings—these are financial vehicles that haven’t even been around for one lifetime. They’re highly modern. And thus incredibly difficult to grasp with our limited understanding.

So when it comes to investing, nobody is an expert. That’s why asking advice from a stockbroker is like asking a toddler to perform a heart transplant. It’s ludicrous. Yet it happens all the time.

Don’t fall for the hustle.

By Jeroen Elsing
Ex-lawyer turned relationship coach