The suggestion was made at the outset that the keys to success in financial markets are knowledge and action. The knowledge part of the equation has been discussed as comprehensively as possible, but the final word has been reserved for investor action, since the way in which knowledge is used is just as important as understanding the process itself.
Indicated in the following are some common errors that all of us commit more often than we would like to admit. The most obvious of these can be avoided by applying the accompanying principles.
1. Perspective. The interpretation of any indicator should not be based on short-term trading patterns; the longer-term implications should always be considered.
2. Objectivity. A conclusion should ...