Many businesses and individuals use the services of stockbrokers on a daily basis.
Stockbrokers are trained people whose job is to help us make good decisions when it comes to money.
However, they may not be as useful as you think.
It Takes a Peaceful Mind
We all follow a certain routine in our everyday life. For this reason, we might not like every surprise that comes our way, particularly if it’s related to money.
People avoid such surprises by seeking help from stockbrokers.
They believe that stockbrokers will help them make smart investment and retirement decisions.
However, psychologists like Daniel Kahneman are skeptical about what brokers claim to offer.
Can brokers help us make more cash or prevent us from making losses?
Earning From Guesswork
Kahneman gathered information about brokers to determine whether their services are valuable.
He examined performance data, analyst views, and price reports.
According to his findings, stockbrokers do not achieve what they claim to achieve.
In fact, a stock is likely to increase once a broker sells it!
Sometimes brokers rely on luck and their job can be compared to a dice game.
You don’t need any skills to play the game.
When brokers get lucky, they make other people feel safe.
Brokers vs Players
If Wall Street’s bigwigs are unable to beat the market, why should we think they are different from us?
Like any other person, you stand a chance of scooping the next Mega Fortune jackpot.
Gamblers are aware of the fact that the odds favor the house, but they still think they can win.
As gamblers, it’s hard to predict a win or charge others for predicting their win.
The truth of the matter is that gambling is a form of entertainment and we must be careful when investing in anything.
To be honest, you’ll have more fun at online casinos than those Wall Street brokers.