5 of 9

Write now Article Tools

The secret of investing is not a riddle but it is veiled in the massive amount of financial information available and not so available to investing. Some fianancial information is useful, other information however, may not be so useful. Sales related bias may create a light smokescreen to the reality behind selected financial information, or an investor may simply be mislead by misinformation or informed wrongly with disinformation. There is also plain random human error and events that can at times plague even the most astute of stock pickers, investors and economists. Ken Fisher a seasoned stock picker, refers to the stock market as 'The Great Humiliator' in his

recent book 'The Only Three Questions that count: Investing By Knowing What Other's Don't'. To find out why it is given such a name you can find out by reading his book which as its title illustrates, reveals that being ahead of the curve in investing means knowing more. Additional helpful books on the topic of investing in the stock market as a route to wealth include the following and those listed at the last link in the sources of this article.

*The Intelligent Investor by, Benjamin Graham

*One Up on Wall Street, by Peter Lynch

*The Warren Buffett way, by Robert G. Hagstrom

Even by knowing more money is not a science as much as some would suggest. Yes money and economics can come frightenengly close to science, but it is not an exact science because human and random events do affect investments. Statistical analysis such as Betas, Correlations and Covariances are used in charting and predicting stock value, but the fact remains, the future of value is both undetermined and unknown. We have all seen the warning "Past performance is not a predictor of future success", but it sure seems that's what we're trained to think when it comes to investing. It's only a part of the story.

More of the story is that the 'science' of money is a reflection of economic thought, regulatory environment, political belief, consumer psychology, supply and demand among other things. Few if any of these things can be predicted with 99.999% accuracy or lower. Aside from not being an exact science, money has multiple personality disorder to make things more confusing! In other words depending on where you are it has different values, different purposes, different uses, and different applications.

In Europe the securities markets are not regulated the same way as they are in the United States or Japan and in 2007 the value of the

• 1
• 2
• next page >>

Add your voice

Know something about Investing in the stock market as a route to wealth?
We want to hear your view. Write now!