Comments on: 4 Reasons Why Most People Can’t Beat The Stock Market http://www.happilyeverafterinvesting.com/4-reasons-why-beat-the-stock-market/ Investing Tips To Help You Beat The Market Safely Tue, 23 Jun 2009 03:19:59 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Jeremy http://www.happilyeverafterinvesting.com/4-reasons-why-beat-the-stock-market/comment-page-1/#comment-38 Jeremy Tue, 23 Jun 2009 03:19:59 +0000 http://www.happilyeverafterinvesting.com/?p=537#comment-38 Hi Lisa - you're right, I'm not a trader. The hearsay is that there is no evidence that the average person can learn to be a good trader, and although I don't doubt that some people can make money trading because of skill (not luck), many people who try to become good traders lose a lot of money. The opposite is true with value investing, it doesn't take any special 'skill', but instead relies on your ability to control your emotions and to follow time proven investing strategies. If you can do both, you can beat the market. Also it seems that many more traders than value investors can trick themselves into thinking they are doing what it takes to beat the market, when for some traders all it takes is a Black swan type event to wipe out all of their gains. Have you read <a href="http://www.amazon.com/gp/product/0812975219?ie=UTF8&tag=thechinainves-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=0812975219" rel="nofollow">Fooled by Randomness</a><img src="http://www.assoc-amazon.com/e/ir?t=thechinainves-20&l=as2&o=1&a=0812975219" width="1" height="1" border="0" alt="" style="border:none !important; margin:0px !important;" /> and/or <a href="http://www.amazon.com/gp/product/1400063515?ie=UTF8&tag=thechinainves-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=1400063515" rel="nofollow">The Black Swan</a><img src="http://www.assoc-amazon.com/e/ir?t=thechinainves-20&l=as2&o=1&a=1400063515" width="1" height="1" border="0" alt="" style="border:none !important; margin:0px !important;" />? Hi Lisa – you’re right, I’m not a trader. The hearsay is that there is no evidence that the average person can learn to be a good trader, and although I don’t doubt that some people can make money trading because of skill (not luck), many people who try to become good traders lose a lot of money.

The opposite is true with value investing, it doesn’t take any special ’skill’, but instead relies on your ability to control your emotions and to follow time proven investing strategies. If you can do both, you can beat the market.

Also it seems that many more traders than value investors can trick themselves into thinking they are doing what it takes to beat the market, when for some traders all it takes is a Black swan type event to wipe out all of their gains. Have you read Fooled by Randomness and/or The Black Swan?

]]> By: Lisa http://www.happilyeverafterinvesting.com/4-reasons-why-beat-the-stock-market/comment-page-1/#comment-37 Lisa Tue, 23 Jun 2009 02:57:15 +0000 http://www.happilyeverafterinvesting.com/?p=537#comment-37 It's clear that this article was not written from knowledge earned by experience, but on pure "heresay" instead. 1) Investing is not Trading/Trading is not Investing 2)losses offset gains and allows your taxes to be cheaper at the end of the year 3)People make money on a stock price going down too 4)Learn this difference between cream of the crop stocks and ankle biters. Dont go to a trash can looking for opportunities. It’s clear that this article was not written from knowledge earned by experience, but on pure “heresay” instead. 1) Investing is not Trading/Trading is not Investing 2)losses offset gains and allows your taxes to be cheaper at the end of the year 3)People make money on a stock price going down too 4)Learn this difference between cream of the crop stocks and ankle biters. Dont go to a trash can looking for opportunities.

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