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Originally Posted by vision3001
I found an interesting gem in Times bookstore this morning.
The book is titled "The Winning Investment Habits of Warren Buffett & George Soros" [1,2,3]
At the back page of the book [1], I found this paragraph to be interesting
Code:
The mental habits and strategies that Warren Buffett
and George Soros both practice fly in the face of the
conventional Wall Street "wisdom":
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- Their beliefs about what makes markets tick are amazingly
similar - and diametrically opposed to academic theories
like the "Efficient Market Hypothesis" and the
"Random Walk" which they both view with contempt.
Hmmm... I guess Fama's and camp will probably consider WB and GS as outliers  ?
Question: How many outliers and years does it take to invalidate EMH and RW? Perhaps it doesn't matter after all, esp. for traders who are profiting from the markets. Let's hope that these profitable traders will pay it forward.
References:
1. http://www.goodreturns.co.nz/books/p...roducts_id=217
2. http://www.marktier.com/streview.htm
3. http://www.paddyfield.com/mainstore/...p?q=988977691X
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Just because FEW people have become billionairs on the stock/equity market it does NOT say anything about predictability of the Market.
What about book called
"Where are the customers Yachts" ?
Also, please do not mix Stock/Equity market with Forex. They are totally different markets that follow totally different rules. It is one thing to be successful in the Stock market, it is quite different at Forex...
And finally, if it is so simple as following some "Amazing Indicators" and fundamental news, why do 90%+ of people loose? And please don't say that it is all the fault of emotions. If the cause of failure were primary emotional, than it would have been possible to write an emotionless robot trader who would win all the money for you. Unfortunately I've spent countless days writing and backtesting automated strategies and not much... For every signal from TA, you can find atleast two cases when it did not work.