Some time ago, experts dealing with the psychology of investing has proven that the clever crooks on Wall Street for 200 years have been misleading market participants, calling them “rational investor.” Such fiction, obviously, serves well to their creators in the XIX and XX centuries.
But now, having analyzed, with the use of the latest technology, how the brain of the investor works, psychologists came to the conclusion, that the investor – the creature is highly irrational.
Below there are 10 rules you need to know, not because of their knowledge leads to success, but because to the success leads the knowledge about how to break them.
1. Indicators of past periods are not guarantees of future results.
This is the most irrational of the rules, and it is often violated, despite the fact that the Commission on the Securities and Exchange Commission, SEC, requires its presence in all financial instruments. Wall Street brokers endlessly repeats of this rule, if it were, in fact, so much. However, if we talk seriously, even experts of a solid financial weekly Barron `s believe that, although the results of past periods are not a perfect measure, better ones still do not exist. The trick is to understand that when this rule should be ignored.
2. To buy and keep – the rest will accumulate.
Vanguard Group founder Jack Bogle once asked Warren Buffett, known as the “Oracle of Omaha”, what is the best time to sell shares. Buffett replied that there is no such a moment, and that he would prefer to purchase securities forever. Investors may wonder: if such an opinion of so respected financier, like Buffett, maybe it’s true, and you should not sell at all? In fact, the truth is that very few of the approximately 95 million American investors reckon with this rule, and Buffett himself do not always do it. In particular, the portfolio managers each year are changing the composition of their managed portfolios. This rule is more a warning about the risks of active trading and encourages the tactics of buying and maintaining a portfolio of high-quality securities.
3. Skilled managers achieve results that exceed the average.
This is a very misleading statement. The recent resignation of Robert Stanski, which occurred after he led fund Fidelity Magellan from the family Fidelity for several years has demonstrated very satisfactory results, proving once again that the calculation solely on the skills of the manager is irrational. True, every year about 15% of the managers really achieve profitability which exceeds the return of the relevant indices. But this does not mean that the same 15% of managers are successful in different years. And only one of them is able to outperform broad market index S & P 500 for 10 consecutive years. Thus, the probability that the return on investment will be higher if invested in passive index funds is about 85%. But this decision is too rational. In reality, American investors invest in index funds only in 8% of cases, thus proving its irrationality.
Sexual potency has been in demand since ancient times. This is the the very reason why topical “penis uzatma” issue is quite a common query on the Internet. Please go to this site where there are lots of info about penis büyütme egzersizi and means for it.
One more thing. As the subject has been very popular for a long time, go and search Google and other search engines. World network gives us a great deal of details on the subject so you can find the needed things at the best terms which are available on the market. Check out social networks and check topics which are related to yours. Go to the niche forums and participate in the discussion. All this will help you to get knowledge of the matter.
And also I would recommend you to subscribe to the RSS feed on this blog as we will do everything possible to keep updating this blog with new info about “penis büyütme hapları” subject and other respective issues.