Importance of Education to the Investor
- Date: 2007-06-27 - Word Count: 489
Share This!
How many of you out there think that the market is performing well?
How many think the market is performing poorly?
And how many feel the markets performance is neutral?
Actually none of these answers is correct. You see, the market does not perform, you do. You perform!
Sometimes you perform well, and other times you do not perform so well. The market doesn't perform, it moves. It moves up, it moves down and it moves sideways.
It moves along like anything else that travels in a business cycle. If the market did perform, then you would only be able to make money in an up market.
As you know, it is possible to make money in a down market, and even in a stagnant market. Thus it stands to reason that the market simply moves and you react to it. So, let's talk about your performance. You have two ways that you can perform, directly and indirectly.
Directly, you pick your own stocks. Indirectly, someone else picks your stocks for you, whether it is your broker or a fund manager.
In the latter case, the fact that you chose someone else to pick the actual stock does not mean that the responsibility of a loss is theirs. After all, it was you who chose them.
In the end, it is you and you alone who are responsible for your performance. Consequently, it is your responsibility to become an educated investor.
Years ago, individual investors didn't have to worry about who was managing their money. Now, things have changed as poor returns from money managers and investment firm scandals have shaken our confidence in these 'professionals.'
To get a better look at what lies ahead, you have to go back and look at what transpired to get you to where you are now. From there, maybe a clearer path into the future will become visible.
During the Great Bull Market of the 1990's, many investors, like you, entered the market and reaped the returns of the largest bull market in history.
Everyone, it seemed, made incredibly high rates of return. The market's incredible, unprecedented move appeared to make geniuses of us all - but in actuality, it masked some major flaws with many industry professionals. It also created a misconception in the general public that all market professionals were experts.
Suddenly, the bubble burst and those flaws were exposed.
Not only did we find out that most of those experts possessed more luck than skill, but we also discovered that some had been cheating us out of our hard earned savings.
Many investors were discouraged with these market developments, and to make matters worse, many had lost significant amounts of money. Not to mention, the prospect of regaining these losses seemed slim to uncertain, at best.
Furthermore, the very people we normally looked to for help in retrieving these losses either lacked the talent to recover them or had lost enough of our trust and confidence that we wouldn't even entertain the thought of letting them try.
How many think the market is performing poorly?
And how many feel the markets performance is neutral?
Actually none of these answers is correct. You see, the market does not perform, you do. You perform!
Sometimes you perform well, and other times you do not perform so well. The market doesn't perform, it moves. It moves up, it moves down and it moves sideways.
It moves along like anything else that travels in a business cycle. If the market did perform, then you would only be able to make money in an up market.
As you know, it is possible to make money in a down market, and even in a stagnant market. Thus it stands to reason that the market simply moves and you react to it. So, let's talk about your performance. You have two ways that you can perform, directly and indirectly.
Directly, you pick your own stocks. Indirectly, someone else picks your stocks for you, whether it is your broker or a fund manager.
In the latter case, the fact that you chose someone else to pick the actual stock does not mean that the responsibility of a loss is theirs. After all, it was you who chose them.
In the end, it is you and you alone who are responsible for your performance. Consequently, it is your responsibility to become an educated investor.
Years ago, individual investors didn't have to worry about who was managing their money. Now, things have changed as poor returns from money managers and investment firm scandals have shaken our confidence in these 'professionals.'
To get a better look at what lies ahead, you have to go back and look at what transpired to get you to where you are now. From there, maybe a clearer path into the future will become visible.
During the Great Bull Market of the 1990's, many investors, like you, entered the market and reaped the returns of the largest bull market in history.
Everyone, it seemed, made incredibly high rates of return. The market's incredible, unprecedented move appeared to make geniuses of us all - but in actuality, it masked some major flaws with many industry professionals. It also created a misconception in the general public that all market professionals were experts.
Suddenly, the bubble burst and those flaws were exposed.
Not only did we find out that most of those experts possessed more luck than skill, but we also discovered that some had been cheating us out of our hard earned savings.
Many investors were discouraged with these market developments, and to make matters worse, many had lost significant amounts of money. Not to mention, the prospect of regaining these losses seemed slim to uncertain, at best.
Furthermore, the very people we normally looked to for help in retrieving these losses either lacked the talent to recover them or had lost enough of our trust and confidence that we wouldn't even entertain the thought of letting them try.
Related Tags: stock option trading, online option trading, home study course, options trading school, option trading school, online stock option trading, online trading options, traders and investors, options home study, trading options made
This Article Provided By The Options University: Options Trading Strategies For Safer Investing and Consistent Profits. Discover how to protect your investments with the leveraged power of options. Step-by-step video tutorials, articles, free and premium trading content can be found at: http://www.TheOptionsUniversity.com Your Article Search Directory : Find in Articles
Recent articles in this category:
- The Secrets to Getting Low Down Payment Car Insurance
Upon purchase of a new car, there is almost always a requirement to buy an auto insurance policy as - The Wisdom Behind Auto Insurance Comparison Quotes
No one in his right mind would not go for a good deal. In fact, everyone is out on their feet and ru - The Benefits of Auto Insurance Comparisons Florida
Insurance can be expensive. This is something everyone knows about especially in the sunny state of - Auto Insurance Florida: The No-Fault Policy
There are different kinds of car insurance offered by a wide range of providers today. Different sta - Finding the Cheapest Auto Insurance Companies
Everyone is asking and searching for the cheapest auto insurance companies available today. Consider - How do You Compare Private Health Insurance Cover in Australia?
Deciding what is the best and most affordable private health insurance cover can be easy if you take - How Payment Protection Insurance Was Mis-Sold
For over six years the issue of Payment Protection Insurance (PPI) and how it was mis-sold to custom - Finding Quotes For Auto Insurance Online
One of the many concerns when you are shopping for auto insurance is being able to get access to quo - How You Can Find the Best Auto Insurance Online
When it comes to renewing your car insurance you are going to quickly discover that there are a numb - Guidelines For Searching For Auto Insurance Online
The internet can be a great source of discounts and values related to auto insurance. However, many
Most viewed articles in this category:
- Trading Forex With Pivot Points
Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days mo - Where To Search For Free Grants
Where do you look for free grants? The search must be thorough or it could be an exercise in futilit - The Connection Between High Blood Pressure and Salt
We are a society of Salt Addicts. It cannot be denied. When you look at the things we do and the pla - Tips For Avoiding HYIP Scams
Before knowing about HYIP Scams, refer to the functioning of HYIP or "High Yield Investment Programs - Getting Credit After Bankruptcy
Consumers do not have to live sans credit following a bankruptcy. By following certain steps consume - Tips For Choosing A Credit Card
Are you looking for that perfect credit card? If so, you may be confused about what exactly to look - Cheap Car Insurance For Teens Online
Many elements determine a car insurance policy. Car insurance companies look at the person's age, hi - What Exactly Is Free Grant Money?
You can apply for free grant money from various government agencies. But where exactly does this mon - Small Business Owners Marketing and Customer Service
Marketing can be time-consuming, but it doesn't have to be hugely expensive now, thanks to the Inter - Apply Online For A Credit Card - How To Choose A Card?
The best type of credit card for you will be dependant on how you intend to use the credit card. Are