Predicting the Stock Exchange

Every day I see in the financial

as some of the newspapers that the weather forecast

market will do in 6 months, 12 months, a number

years. Ten measures that will double in the next 6

months. Well, Im having difficulty trying to predict

what it will do tomorrow. Do not trust anyone

says he knows what the future holds for

market.

Obviously, your broker will send

gobs of slick material about various companies

predictingdoubles or triples in

next 12 months. On the New York Stock Exchange

will be about half of one percent from

(0.5%) of companies doubled this year.

Are you smart enough to choose the winners? I

and Im not a professional. E

Im sure your broker is not either. He just wants

on an errand to do and could promote a

stock brokerage companies want to push.

Each investorwants to know

future and send money to an expert

send news about a company that only (?)

who knows. And pigs can fly. One thing about the

market. It s almost impossible to keep a secret

and everyone knows everything about other

companies. Once analyst finds a

convincingly that can affect the price of a

share that secret with a few close friends.

Within minutes the secret is known byhundreds

of thousands and is immediately reflected in

actions.

If you are sucked into one of these

money that some smooth-talking salesman or

newspaper verbiage I strongly suggest

immediately plan your exit strategy. Without a

exit plane, you can easily lose a lot

your investment. This is not an investment, but

is a game of chance and should be treated as such. L

The first thought of a professional trader is ifI

how wrong I am willing to lose ? Maybe 2%

From 1982 to 2000 it seemed to all

was a financial genius. How many of these people

that the substantial profits held in 2000? Almost none.

Most lost 40% to 60% of their money. Brokers said,

Hang there. You are in for the long term.

Unfortunately he did not say that Modern

portfolio theory is40 years on the basis of a line.

Yes, but understand that it is not necessary

predict anything. Do not be predicted. What can