Why 63% investors under Perform the market

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Stock trader tearing out his hair from despair, rear view
SPX500 has given 27.67% return in 2021 . According to data 63%+ investors underperform market in 2021. too add fuel into the fire , last 5 years count is 75% and if we consider last 10 years it is way higher to 87% of investors underperform the market. This includes not small fish like us ! but big managers and investment funds from big banks !
๐™’๐™๐™ฎ ? ๐Ÿงบ๐™Ž๐™ฉ๐™ค๐™˜๐™  ๐™ฅ๐™ž๐™˜๐™ ๐™ž๐™ฃ๐™œ ๐™๐™–๐™—๐™ž๐™ฉ ๐™ฌ๐™ž๐™ฉ๐™ ๐™š๐™ซ๐™š๐™ง๐™ฎ ๐™™๐™ง๐™ค๐™ฅ !
The whole idea of Active stock picking is based on a false notion “that the market is somehow mispricing stocks” hence Stock pickers canโ€™t identify underpriced stocks with any regularity. So getting in a stock with an idea purely on a value of a stock , without future growth or cash flow to back it up , that gonna burn like chilly the next morning ! ๐Ÿ”ฎ๐™„๐™ฃ๐™ซ๐™š๐™จ๐™ฉ๐™ค๐™ง๐™จ ๐˜ฝ๐™š๐™ก๐™ž๐™š๐™ซ๐™š ๐™๐™๐™š๐™ฎ ๐˜พ๐™–๐™ฃ ๐™‹๐™ง๐™š๐™™๐™ž๐™˜๐™ฉ ๐™ฉ๐™๐™š ๐™๐™ช๐™ฉ๐™ช๐™ง๐™š/๐™ˆ๐™–๐™ง๐™ ๐™š๐™ฉ. Analysis is good but remember news based analysis is no good , when it arrives your inbox it is already priced in the market/stock price. overconfidence causes investors to exaggerate their ability to predict future events. They are quick to use past data, and to think they have above-average abilities that enable them to predict market movements into the future. ๐Ÿง‘โ€๐Ÿคโ€๐Ÿง‘๐™๐™ค๐™ก๐™ก๐™ค๐™ฌ๐™ž๐™ฃ๐™œ ๐™ฉ๐™๐™š ๐™˜๐™ง๐™ค๐™ฌ๐™™ ! You might be doing your own research your own analysis but when you see your friends/family gaining , you indirectly tend to doubt your own analysis and follow the crowd. this doesn’t only happens to you but also to big fund managers who constantly under pressure to out perform the market. ๐Ÿ˜Ž๐˜ฟ๐™ค๐™š๐™จ๐™ฃ’๐™ฉ ๐™–๐™˜๐™˜๐™š๐™ฅ๐™ฉ ๐™ฉ๐™๐™š ๐™ก๐™ค๐™จ๐™จ ! “Good investor is not who always wins but knows when to cut the loss !” Even big names like Bill ackman who have lost Billion dollar on certain investments. while holding onto something you believe is a good thing but it might hurt you with opportunity cost .If you don’t have enough cash on side line to pick up stock/ETF which gives you good gains . which overall reduce your return . Best of luck for 2022. happy making money ๐Ÿ’ธ Follow for more analysis or Updates. ๐Ÿ’ธ