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I'm completely interested on investment theories since I

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I'm completely interested on investment theories since I discovered Day trading is bullshit and I'm reading The intelligent investor. Would you recommend me to take a look to the "Random Walk" ? Why ?
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>>1691195
Sure, I read it and you should too. It IS dry though. He explains what indexes of stocks are good long-term investments using 40 years of previous market history. He only looks at their market capitalization and a handful of other factors later in the book. He runs a Mutual Fund in Canada if I recall and does very well. The most important thing I learned about from this book was his Cornerstone Value strategy that turned me onto a serious value investor.

But you have to understand that past results don't predict future results of course and that you better like doing long hours of math for marginally better results than most major index funds.
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currently on p.236. its an interesting read if you're genuinely interested in economics, psychology of the markets, and various trading strategies.
if you're looking to learn "da best trading strategies" this may not be your book (he essentially shits all over the aforementioned 'strategies'). The crux of the entire book is the premise that no investment offers better returns in the long run than buying a low cost, well-diversified ETF.

Just my $0.02
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>>1691608
additionally, I should probably also add that by investment, I mean investment in securities, but I should think thats implied by the topic of the book. Also by "buying" I mean that in a few occasions he openly says that the only appropriate timeline in his mind is to buy and hold till you die.
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Problem is "the markets are random" and "you cant time the markets" are absolutely false. IF you ever learn how the market really operates your jaw will drop to the floor when you see how its so amazingly symmetrical and precise it runs like a Swiss watch.
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>>1692067

>IF you ever learn how the market really operates your jaw will drop to the floor when you see how its so amazingly symmetrical and precise it runs like a Swiss watch.
>its so amazingly symmetrical and precise it runs like a Swiss watch.
>like a Swiss watch.

U wot m8. Could you develop this? I thought that stock markets were kinda random.

Is this "amazingly symetrical" functioning the reason why investors like Warren Buffett or Peter Lynch are so amazingly rich?
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>>1692067
so how many millions have you made timing correctly the market? how high do you rank on the billionaire forbes' list?
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>>1692495
Some people drive Ferraris
>Bullshit, where is yours?
I don't have one
>That's right, because they don't exist

/biz/ logic, everyone
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>>1692067
well you certainly can across very short time frames... plenty of computers do just that

longer time frames however, it is certainly very chaotic if not actually random - prediction/forecasting is unlikely in most circumstances and trading strategies tend to exploit other things such as trends persisting etc..
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>>1692519
>sure, I could have made millions because of my intricate understanding of markets
>I just choose not to
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>>1694289
Way to disprove the argument, asshat.
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>>1694529
how have you applied your knowledge of the markets, if at all, to your advantage?
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>>1696318
Well, for starters, I know that if your capital pile is large enough, you can hold positions pretty much indefinitely. That means that (providing you're not gambling on penny stocks or some worthless shit) you can afford to hold positions until they become profitable. It's even easier if they pay dividends, as your cost basis drops every quarter, so you can break even or become profitable without the stock even rising. Yes, very rarely you'll hit something that will never recover, but assuming you've got your capital spread across a few dozen positions, it won't really matter.
Unfortunately, we're talking about a very large amount of capital, and most people wouldn't even bother trading if they had it. That's why it really becomes something one does for the challenge.
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>>1696343
right, but initially choosing those positions is the part that requires the most insight
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>>1696346
Not as much as you might think. Granted, it can make a huge difference in your profit, but even poor picks won't usually break you, at worst you'll have dead money sitting around for awhile.
I bought a large position in a company almost a year ago for around $13 per, figuring it would rise to $17 or so within a few weeks. Instead, I wound up holding it most of this year. The size of the position paid me decent dividends every quarter though, lowering my basis, and when their last earnings were reported, it shot up to almost $30.
So, not the best pick, dead money for almost a year, but in the end I left with more than I had planned to rake in on the trade.
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