The Efficient Market Hypothesis states that we can not “beat the stock market”. And it’s a very sound theory actually. Most people will never beat the market returns, but this assumes we’re “playing” the market itself (the index). Most people who do that are foolish. Because basically everybody/biggest capital is focused on “the market”. But if we focus “not on the market”, then we have a chance to do very well. A few caveats – if we sit in losers/don’t quickly dump losers, or sit in winners too long/don’t take profits, then this doesn’t work. Because once again, we’re back to doing what everyone else does. And the other caveat, if you don’t work hard at this, then hang it up now, this business is not for you.
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