Alone in the exchange

Almost everyone has heard of names such as Peter Lynch, Robert Kiyosaki, Warren Buffett, Charlie Munger, Benjamin Graham, Mark Douglas, Morgan Housel. When financial literacy books are written, these are usually the first names that come across people. Each of them has valuable knowledge and background, has written down their experiences and observations, and has written very good books so that people can improve their financial literacy and gain different perspectives. Although many people include these people in their content, very few people have actually read the books they have written. One of the biggest reasons for this is the lack of a culture of reading books in the context of Turkey and the fact that people's attention spans are quite short. For this reason, I will start a new series of articles where I can quote some parts of the books that I was influenced by and share my notes with you. Thus, even if you do not read the books, you will learn some of the important points. I would like to start the series with Peter Lynch, one of the people I am most influenced by.

"Don't listen to the professionals"

Peter Lynch's first piece of advice was, "Don't listen to the pros." This is a very meaningful start, because almost everyone who does not know about the markets acts on the basis of the discourses of others, (Kripto why are their phenomena trusted? okuyabilirsiniz) believes that if he listens to the experts, he can get rich quickly. However, according to Peter Lynch, the difference between professionals and other investors is the ability to sell "what they think they know". Investors with no knowledge, on the other hand, believe the "speculations and cool words" made by these people and reshape their investment decisions.

Does Wall Street think like the ancient Greeks?

Unlike many investors, Peter Lynch did not educate himself in fields such as mathematics, physics and chemistry, but in social sciences such as philosophy, history and psychology. He emphasized that it is absurd to think that the work is only mechanical, and said, "If there was something that could be explained by formulas or numbers alone, everyone should have been rich by now." According to him, it is much more rational to figure out the philosophy of the work, to investigate the logical and irrational aspects, and to build a solid psychology. He even emphasized that Wall Street thinks like the Ancient Greeks. "The ancient Greeks used to argue throughout the day about how many teeth a horse has. They believed that they could reach the answer by arguing when it was possible to find out the answer by opening the horse's mouth and looking at how many teeth it had." With a similar logic, many people are researching where the prices of companies/coins in the stock market will go, drowning in the graphs and drawing pictures on the charts. However, it makes much more sense to research the company and the product itself. If a product with potential is supported by the trend, it will rise rapidly.

Understanding Herd Psychology

"In the stock market, the concept of herd psychology generally prevails. Instead of buying a good company that has potential at a low price, individuals decide to buy it when everyone else starts to prefer that company, because others must know something. They also think that staying away from the herd is a risky move, and that what everyone prefers is a safe harbor." We can see a similar bias in the crypto sector as well, and we can say that the fundamental logic of what we call trends is also based on the concept of herd psychology. People are drawn to certain products simply because others are buying them, without knowing the reason. Especially in Solana casinos, we see that the stories being written and the movements of the masses are effective in the rapid momentum gained by many newly emerging cryptocurrencies.

Staying true to the plan by isolating from external noises

"Even if the main information is in written sources, many investors prefer to listen to the walls. The information we hear from outside seems more attractive to us because it is easy to access, does not waste time, and we do not question its authenticity; otherwise, why would they tell us? The advice given about the stock market, whether good or bad, is engraved in a person's mind. Then, one day, it is unexpectedly recalled again." Therefore, it affects our decisions, emotions, and thoughts. This situation causes many investors to invest in companies whose operations they do not understand. The more we can isolate ourselves from external voices, the more we can stay true to our plan. Especially in the crypto sector, a few trendy words, a good website, and flashy edits are attempting to raise money for many fake companies, so you must conduct thorough research. If only there were an easy way to make money, but when you think about the fact that you are competing for a portion of resources in a world with approximately 8 billion people, you can reconsider how mathematically challenging it is to accomplish such a task.

This article does not contain investment advice or recommendations. Every investment and trading action carries risks, and readers should conduct their own research when making decisions.