Theory, all that is required to be a successful investor is to know when to buy, when to sell and, most importantly, how much to wager.
The tongue-in- cheek advice to “buy low, sell high’’ given to every trainee trader perfectly encapsulates the theory as well as the practical difficulty.
The short half-life of traders shows that not everyone can follow the advice.
The reason why it is hard to put theory into practice is that we are not the rational calculating machines so beloved of academics.
The buyer believes prices will rise while the seller believes the opposite; both can’t be right
The tongue-in- cheek advice to “buy low, sell high’’ given to every trainee trader perfectly encapsulates the theory as well as the practical difficulty.
The short half-life of traders shows that not everyone can follow the advice.
The reason why it is hard to put theory into practice is that we are not the rational calculating machines so beloved of academics.
The buyer believes prices will rise while the seller believes the opposite; both can’t be right
