Market lays traps which can fool wise men just as easily as fools.
The length and quality of one’s education or level of one’s IQ has very little to do with making money investing in the markets. The more intelligent people are - particularly men- the more they think they really know what they’re doing, and more they have to learn the hard way how little they really know about outsmarting the markets.
We have seen how much damage supposedly bright, intelligent, and highly educated people can do in 2008.
Its important to take more control of your investing and make up your mind that you’re going to learn how to save and invest your hard-earned money more safely and wisely .
Market has a simple way of crashing excessive pride and egos down to bits. The whole idea is to be completely objective and recognize what market is telling you, rather to trying to prove what you said or did was right.
The fastest way to be humbled is to try to prove that you are right and the market is wrong. Humility and Common Sense are positive qualities which will help you to be on the good side of the market.
Conventional wisdom or consensus thinking in market is seldom right. Listening to quoted and accepted experts can sometime lead you to trouble.
During 2000 bear market , one expert after another kept saying to buy Tech stocks and to capitalize on the once in life opportunity, on the way down!
Market bottoms are accompanied by overwhelming negativity from the experts.
You can’t go by how you feel in the market. The only thing that works is to let the market indexes tell you when its time to enter and exit. Never fight the market- Its bigger than any one individual or group!
Source : How to Make Money in Stocks: A Winning System in Good Times and Bad