12/03/2015

To make money in the market think rationally


One of the big problem you will see in market is that there are lot of illogical things floating around based on some half baked ideas or assertions.

It is like folk medicine. All kinds of remedies are offered as cure and most of them are completely bogus claims.

Understand why stock go up and how they go up and what kind of buy points are ideal entry points.

You must and I repeat must have a rational understanding of stock moves. If that rational is based on actual market observed behavior and research you will have success.

Why do stock move up or down

What drives those moves

Why do funds buy some stocks and why sell some

Why are some funds more successful than others.

Why have certain buy points around for years and still work.

Why do underperforming fund do things they do

These things will give you some perspective and will help you avoid following wrong kind of setup ideas and help you avoid chasing methods which are not rational.

No comments: