The stock market acts based on a certain pattern.
In Buffet own words:
"In the short term, the stock market is a voting machine"
"In the long term, the stock market is a weighing machine"
Therefore,
1) Short term player needs to play based on the market sentiment because it is a voting machine.
2) Long term player needs to play based on getting "dollar for a penny" due to market disequilibrium as it is a weighing machine.
Mixing it up, spelled disaster.
It's like asking a marathon runner to be a sprinter and vice versa. Both spell disaster.
"See money, take money"
Good Luck! Amigo!
"Have a productive day ahead"
Yours sincerely,
Dr. Lion.
In Buffet own words:
"In the short term, the stock market is a voting machine"
"In the long term, the stock market is a weighing machine"
Therefore,
1) Short term player needs to play based on the market sentiment because it is a voting machine.
2) Long term player needs to play based on getting "dollar for a penny" due to market disequilibrium as it is a weighing machine.
Mixing it up, spelled disaster.
It's like asking a marathon runner to be a sprinter and vice versa. Both spell disaster.
"See money, take money"
Good Luck! Amigo!
"Have a productive day ahead"
Yours sincerely,
Dr. Lion.
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