Investing in Magical Thinking and pixiedust.com

Numbers don’t lie, but brokers do, and unfortunately, they get away with it all the time.  Some will play on their client’s irrational thoughts about how well the stock market will make money for them, and use that magical thinking to justify risky investments while pocketing fees.  Meanwhile, the poor marks will spend, lose, and spend again believing things will get better, because they are special.   This type of behavior is called magical thinking, and it explains why so many people lose money in the stock market, yet continue to play.    In their minds, they are special cases, and don’t have to worry because the dividends will start paying soon, and then “everyone will see” how right they were.

Magical thinking can be thought of as the attribution of causal or synchronistic relationships between actions and events which cannot be justified by reason and observation.   In other words, they take actions based on unfounded beliefs and feel assured of positive, tangible outcomes.  For example, a person will invest money in a sketchy deal, and feel there’s no reason to drill down into the details, because their thoughts by themselves can bring about the positive effects (money) they deserve.  Think of that movie, The Wolf of Wall Street, and how the customers beliefs were exploited until the firm collapsed under the weight of the magical pixie dust that was sprinkled so generously around to cover up the truth.

Rather than getting caught up in the magical thinking and pixie dust of deception, shop Groupon and acquire some real savings.    Instead of losing money, buy from a company like QVC.  Then, you’ll be investing in people who appreciate your trust and support of their product, and you’ll get tangible items in exchange for your cash.  You can save as much as 20% off select deals, 45% off 5-hour lunch time specials and up to 74% off already discounted items.  They carry a vast selection of clothes, shoes, accessories, jewelry and just about anything a person could want, including electronics and supplements.  They have racked up billions of dollars in sales, and you always get a fair exchange for your money.  And you don’t have to be rich to take advantage of the deals offered by Groupon, but you will feel very smart.   There are no coupons to clip, no deadlines to remember, and no traffic to fight.  Best of all, people really can see what you’ve invested in, because you can have your items shipped to your door – many times for free.  You’d never get a deal like that from the Big Bad Wolf.…

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