Posted on February 19, 2009 - by Createwealth8888

Stock picking is part science, part art, part luck, part tuition, and always uncertain – “not precisely knowing.”

Photo by kalandrakas

A while ago I could have been convinced that if I put in a lots of effort into FA , TA and watching the market closely to gain knowledge, skills, market view, and a lots of experience, and with intelligence would produce some good returns from the stock market.

But, while the intelligence and experience will help me avoid unnecessary risks, apply money management, reduce day-to-day emotional stress, it doesn’t assure me of the desired returns from the market. The market does whatever it wants, rational or irrational, it’s just the market. It is always uncertain and not precisely knowing

Who are those that really move the market up and down? This is the mass of market watchers with either plenty of money, plenty of shares on hand, or plenty of guts. Once these masses rush in or rush out, prices will move drastically in either direction, and then after that the news will come out to explain and justify these price movement. Read more…

Related posts:

1. Not knowing what you do not know is most dangerous (Type I & Type II ignorance)
2. An uncertain world and its asymmetrical payoffs
3. Dividend Investing:It matters when you buy the stock