Investor Herd Mentality Turns Big Gains into Small Losses and Small Losses into Huge Losses

investor herd mentality is the downfall of most investors

Investor herd mentality, though most investors innately know is detrimental to their financial health, is for some reason, a repressive chain that is incredibly difficult for most investors to break. Truth is a pill the vast majority of investors refuse to swallow and is also the main reason behind why investors turn big gains into small losses and small losses into huge losses. Investing truth, when it violates the consensus of the community, is necessary to not only avoid massive losses, but also to keep gains and to outperform 99% of the community.Unfortunately, the vast majority of investors remain beholden to the many pitfulls of investor herd mentality.

There is much greater and quicker money to be made in the art of willful deception and lies in the world of finance than telling the truth, even when telling the truth results in highly accurate calls that have been documented publicly or in private forums. Even though I just launched my skwealthacademy substack platform a little more than a month ago and still have not commenced putting any of my published content behind a paywall, as is the case with nearly 100% of substack newsletters with the greatest amount of subscribers, even as an absolutely free substack newsletter, which is increasingly rare, my subscription base has only grown to a few hundred people in the first month after launch. Given that my first YouTube channel quickly grew to 30,000 subscribers and was adding another 3,000 to 5,000 subscribers every month before Google/YouTube shadowbanned all my content and effectively stunted my channel growth, my low subscription base to date on this platform is not for lack of valuable content. Growth is only slow on this platform due to Google algorithms shadowbanning and preventing people from finding it, as I’ve already made several predictions on this new platform within the first few weeks after launch that were highly accurate and that saved my readers thousands of dollars in investment profits (you may read about my predictions that came true here).

Today, a near complete absence of critical thought training at all level of academics, from elementary school to the post doctorate level, has given rise to people only favoring investment analysis that agrees with their opinions, whether correct, or more often than not, that turns out to be completely wrong.  The problem with investor herd mentality is that most people, when it comes to investment forums or groups, are completely surrounded with like-minded thinking, and such adoption of investor herd mentality prevents us from every questioning if the herd is wrong. This is the worst possible type of mentality to possess as in investor. Most people in the world, when it comes to investment analysis, would rather have their incorrect opinions validated and reinforced, as happens with tremendous frequency with investor herd mentality, than to be informed that their opinion is completely wrong, even though such mentality can cause thousands up to hundreds of thousands of dollars of losses. As crazy as this sounds, I am 100% certain that my take on this is true, because of the dozens of times I’ve personally observed it over the past year-and-a-half. If you are fortunate enough to find a person that does not subscribe to the narrative of the herd, cling to this person with ferocity, because this person will serve as your most valuable pillar of reality in your investing life.

Furthermore, my track record of providing extremely accurate predictions (which I’m not going to rehash here because you already can read about them in the link provided above) did not just start a month or two ago, but I’ve been providing dozens of equally accurate predictions of investment behavior for decades on my news site here, including guidance to open up put options on 14 stocks in early 2020, of which nearly all returned near 100% or 100%+ profits in just a few weeks.  In this specific case, many of the 13 put options strategies I discussed that returned 100%+ profits consisted of puts on Asian based company stocks, a factor that again is different from the mostly American and European centric investment analysis that dominates online investment forums. Yet, other financial sites that consistently have far inferior documented track records versus mine tend to attract thousands of paid subscribers, simply because hundreds of thousands naïve investors exist that love only being exclusively told the financial opinions they want to hear, even if they are wrong year after year.

In response, many of my colleagues, after I explain this dilemma to them, tell me I should start a second substack, under a pseudonym, copy the modus operandi of these financial charlatans, and just tell people what they want to hear, so this second platform can financially support the one which is far more accurate and which exposes the truth. They tell me I should do this, if only as a social experiment to later reveal that the far more accurate, truthful free platform that produces thousands of dollars of investment profits for its followers is severely outperformed by the delusional, deceitful investor herd mentality subscription-only, fee-based newsletter that never is correct but always tells people what they want to hear. For example, I have zero doubt that a second substack newsletter that provided opinions on the direction of BTC prices that only matched investor herd mentality narratives, but that was in direct opposition to my true opinions and was called “BTC TO THE MOON!”, would immediately accrue hundreds of paying subscribers within months, as long as I wrote it under a pseudonym.

I understand technical analysis to a high enough level whereby I could produce charts that always made it seem as if HODLing was a great idea and that buying every dip would produce greater profits over time, even if I never once believed what I was writing. And I have ZERO DOUBT that such a substack newsletter would be highly successful. All I would have to do is (1) provide technical analysis that constantly placated and soothed all BTC holders into believing that every major price dip was “a buying opportunity”; (2) reiterate “don’t ever budge from your diamond hands” HODLer mentality, and (3) condemn any analyst that held an opposition opinion as “a complete hater” that was just jealous of us and that would miss out on the future BTC fortune that was our “destiny”. I have no doubt that I could amass thousands of paying subscribers within the first year of using such a business model. NONE. But since deceit and bamboozlement that is so rampant among financial newsletter publishers is against everything for which I stand, I cannot do this, even though great profits lie in such type of bamboozlement in the finance industry.

Instead, the revolution that exists in my DNA binds me to truth. Instead, on my skwealthacademy patreon platform, I warned my patrons that massive risk with very low reward existed north of $66,000 BTC prices at the start of this past November. I repeatedly reiterated this position back then, even though several patrons left my platform because they stated they would not deal with such delusional opinions when clearly BTC was headed north of $100k before year end. Back then, some of my patrons that stuck with me informed me that they very reluctantly took my guidance, simply because all of my calls to buy and sell BTC  for the entirety of the last year and half had been correct. Honestly, this is NOT the correct reason to have followed my sell guidance back then. The correct reason to follow my guidance would be an understanding that the reasons that backed my sell opinion were logical and fact based, and therefore more likely to manifest than the opposition BTC consensus that new BTC high prices for the year would launch the price north of $100,000 by year-end. Such rational, critical thinking would have been the correct reason to follow my sell guidance back then.

Just a few weeks later, I reiterated my sell opinion in an article I published in my substack newsletter. Since then, BTC prices have fallen another $11,000 in price and fallen below $50,000.  Even though I realize that sell opinions in a HODLing community are never going to be popular, and that the popular opinion issued by BTC whales are completely Machiavellian, self-serving, and designed to deceive and mislead most BTC investors into making poor decisions, even documented truths are not even enough to convince the duped that they are being duped. Once would think that simple documentation of every time the BTC whales issued past HODL calls to the masses as erroneous for the past year-and-a-half would be sufficient proof to convince the masses that the whales are not issuing calls beneficial to them. But as the saying goes, you can only lead a horse to water, but you can’t force it to drink. That is why I’ve always been very firm in my insistence that the path to becoming a superior investor than one’s peers is to first develop a very strong critical thinking foundation. Only if one possesses this is it possible to outperform one’s peers in investing returns.

But I’ve not only issued sell warnings with BTC but also have issued buying guidance that was on point as well. I’ve only issued one buy guidance for BTC to my skwealthacademy patrons through the entirety of 2021 up to this date (6 December 2021), and that was when BTC prices dipped below $30,000 in mid-July of this year. Furthermore, they know that the only other specific price call I made with cryptos was to sell Million Coin (MM) when it was about $76, because I predicted a price of $1 for MM by the end of October 2021. Though this did not materialize, MM still fell by a staggering 78% in price after I issued my prediction. And even when it bounced back to $25 recently, I reissued my commitment to a $1 price prediction for MM  coin by the end of Q1 2022. As we all know, predictions with timelines should always be taken with a grain of salt, as it is near impossible to predict a price AND date with enormous accuracy. But still I remain confident in my prediction of an eventual $1 price (and likely even a price closer to $0.01 than $1) for MM in 2022.

I will issue this promise to you in continuing to publish my substack newsletter: As long as I receive the future support required to keep my substack newsletter viable, I will continue to publish high value content for free here. Even after I decide to convert my newsletter into a pay-for-content platform,  I will likely only place 30% of content behind a paywall and continue to publish 70% of my articles for free. However, for this model not to be hemorrhaging money for me,  as is the case right now in publishing my newsletter for 100% free, I respectfully request your assistance in the following manner. I  need your help to grow my free subscription base to a minimum of 5,000 to 10,000 subscribers from its current base. I have calculated, that at this range of subscribers, but no less than this, a large enough number of free subscribers will convert into paying subscribers to financially support my ability to continue publishing the majority of my articles on this platform for free. Without your help in this endeavor, it will be impossible to keep publishing the majority of my articles here for free. Thus, I ask of you this massive favor, but a favor from which all of you will benefit.

Please help me grow my free subscriber base by telling all your friends, family and colleagues to subscribe to my substack newsletter for free right now. But please assist me in this manner only if you actually believe the content I publish here is of extremely high value.

If you do so, I promise to continue to publish articles about investment assets that are truthful and to offer extremely unpopular opinions when I believe them to be true and to provide great utility to all of my readers. Most often, in the financial world of investment analysis, the most valuable written analyses are the most unpopular ones. If the popular sentiments were the right ones the majority of the time (which they almost never are), then common sense would dictate that nearly everyone we know involved in the investment game would be millionaires from following herd mentality. It is the courage to go against the grain that makes millionaires in the investing world. But it is not courage to do the opposite of what everyone is doing, driven simply by a desire to be contrarian, that will produce large payoffs. Such a behavioral model will likely result as in just as many failures as decisions to go with the herd. It is the courage to go against the grain when facts and intelligent analysis dictate doing so that will separate you from everyone else in the game and yield superior profits and investment returns.

Access more skwealthacademy content through these channels: For investment analysis and tips every week and month (including the identity of nine stocks I suggested buying less than six months ago that yielded on average, about 113% per stock upon my guidance to divest, and that I highly believe will provide such an opportunity for similar returns again very soon), join my patreon platform here (less than 30 spots remain to join my benefactor patron level, after which memberships will close at this level. Membership at the transcendent level has already closed and new membership spots will only open up when current members leave). Subscribe for free to watch my investment videos here. To donate to the launch of my upcoming wealth building Academy, visit my gofundme campaign here, and to download a fact sheet about how my soon-to-be-launched Academy will radically alter business education forever, click here.

J. Kim

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