Investment Decisions

There are only three ways to make investment decisions:

A. Market timing,

B. Security selection, and

C. Asset allocation.

Market timing, including all forms of charting and "technical analysis," doesn't work because nobody can predict the future ...

Period!

Markets move in response to millions of people acting on random daily news, which can't be predicted.

If someone could market time with as little as 51% accuracy, they'd be on the front page of every newspaper every day!

Everyone you see predicting the future is just guessing or are just trying to convince you to buy the stocks they just bought so they'll go up, and they can sell at a profit.

It's their job to convince you that they can predict the future so they can move their products and sell their services.

Over time, their "mistakes" will lose you way more money than their lucky calls will make you money.

The only people who have the actual data needed to forecast a stock's price are the people who work for the company - and they can't tell anyone because they'd go to jail by breaking insider-trading laws!

There's just too many stocks, too much news, and it all happens way too fast to cope with. Company news comes out of nowhere and could bring a stock down before anything can be done about it.

That's way too risky, so individuals, and pros that manage money for clients, should not waste time trying to pick stocks. But they love to do it because it's just so much fun to be a "player on the market."

Some do it because it's the only sales pitch they know how to tell!

It's humanly impossible to find the time to both manage clients' assets in a way to get the results clients need and expect, and keep up with thousands of stocks on a daily basis.

Some may get lucky here and there, but over time the losses of their "mistakes" will greatly outweigh their lucky picks.

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