The way most people invest, it’s a fool’s game.
They buy on a hunch or a hot tip. Stocks get hammered, and the average guy sells at the bottom. Google looks like it’s going up forever, so otherwise-prudent people pile in at the very top.
Investing can make the cleverest people -- folks who are experts in their own fields -- look mighty dumb.
Greed and panic
For most investors, emotion trumps intelligence.
We bounce back and forth between greed and panic, depending on how the market is treating us that day.
And when it comes time to make an important decision, we have as much self-control as a couple of seventeen-year-olds on prom night.
You’re human. I’m human, too. But I hold one huge advantage over most investors.
I learned many years ago that I’m an emotional creature. We all are. It’s what makes us smile at little children at play. It’s what makes us want to pet a puppy.
It’s a wonderful attribute that helps make us human. But that same attribute makes us lousy investors if we let it have its way.
That’s why I only trust the Science of Investing using technical analysis.
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