Tuesday, June 06, 2017

What Do We Truly Know About Markets?

Let's do a little exercise.

 Here's a question.  Please write down your answer to the question before reading on:
WHAT DO YOU KNOW WITH A HIGH DEGREE OF CONFIDENCE ABOUT TRADING/INVESTING THAT DOESN'T REQUIRE ANY STATISTICAL SUPPORT?

 Knowledge is what has statistical support; wisdom is what we know to be true from hard-earned life experience.  What do you truly know about markets and trading?  What wisdom do you draw upon in your best trading and investing?

 Once you've written out your answer, please compare your wisdom with the answers offered by a number of thoughtful market participants.  This blog post from Abnormal Returns has plenty of insight to inform our trading. 

 Good trading is grounded in knowledge; great trading reflects wisdom.  The best market lessons are also phenomenal life lessons.  Your best trading will result from acting on your greatest wisdom.

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