Here’s the second part to “Novice Vs Seasoned” taken from my upcoming book.
The young and impressionable shopper doesn’t give much, if any, consideration to market timing and will buy on impulse without thinking of the long-term consequences. In short, they buy for the “now”.
The old and wise shopper is particular about the timing of their purchases knowing that a well-timed purchase could save some money that can be used for other purchases in the future. They buy for the future.
The young and impressionable shopper doesn’t consider the price as long as they can have possession as quickly as they can get it.
The old and wise shopper is particular about the price even if it is affordable as long as they can have the best price no matter how long it takes to get that bargain.
The young and impressionable shopper is easily influenced by marketing, advertising and peer pressure and will buy on public sentiment. (Herd instinct)
The old and wise shopper is not easily moved by hype, will be extremely skeptical about marketing gimmicks and will be deterred by pressure. (Contrarian)
The young and impressionable shopper has a budget based on a monthly income and how much their credit card can stretch.
The old and wise shopper has a budget based on prudence, frugality and need.
The young and impressionable shopper will buy unnecessary things they can’t afford to impress people that don’t matter and only impress them for a very short time.
The old and wise shoppers buy things they need with what they can afford.
The novice trader is exactly like the young and impressionable shopper in every way. They will always get caught up in the hype, they will always buy the rumor and sell the news, they will always regret pulling the trigger too early and they almost always spend more than they can afford.
The book is due out by March 2012.