Most investors have a similar view of the investing scene. They hold the Following beliefs:
1. Buying a deviersified basket of stocks and holding them for the long run is the best way to invest.
2. They can perform beeter then other investors, because they are smater then they are.
3. Buy and hold is the only rational way to invest.
4. Doller-cost averaging is a good strategy.
5. Financial advisors, brokers, and so-called stock market gurus should be consulted or followed to obtain the best possible investment result.
6. Tax consequences should always be considered in marking investment decisions.
Belive it or not, all there belives are fales! Many intelligent individules are not intelligent investors. In making their investment decisions, too many investors rely only on fundamental research and totally ignore the technical indicators of stock market investing.
