Most Investors are Gamblers

It is important to know your opponents.  Most investors just play hunches:

If they’re not relying on investment knowledge, investors are playing the market the way most people bet at the track or in the casino, by playing hunches. Nearly 80 percent of investors surveyed by Natixis said they simply follow their gut instinct.

When a stock moves in their favor all is fine and well but when it moves against them they seldom have a plan to deal with sell off.  They hold on far too long.  Perhaps it is for this reason, stocks overshoot valuations on both the upside and downside.