Stop the Madness – Stop Asking for Guru Opinions Whether Something is a Buy or Sell

By Lawrence

iStock_000016397279XSmallPart of Art of Chart Reading

Many people likes the comfort of guru opinions, especially when that opinion agrees with their own. When the guru opinion, even if it is a great one, when reduced to a buy or sell, will loose most of its meaning and likely to be harmful to your trading decisions.

A Trading Decision is a Complex Decision

Unlike simple daily decisions like, do I eat a sandwich from Subway for lunch or do I pick a meal at the closest diner, trading decisions is way more complex. In fact, it is many times more complex than choosing among 2 to 3 choices.


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Comments
  • geosing December 11, 2011 at 9:40 am

    “Confirmation Bias” also aids and abets in this. Expert 1 is bullish; Expert 2 is not so bullish on a stock. If the trader/investor is bullish or is already in it and under water, there is a tendency to ignore Expert 2 and embrace Expert 1 to stay in the position and even add to it.

    Looking forward to the new section….

  • fmaz01 December 11, 2011 at 10:40 am

    Unfortunately most people still give too much weight to the clowns on tv.. Sad truth about how manipulated this all is.. I don’t think I’ve turned on one of those channels in years now and have no desire to do so.. Looking forward to the new section as well..

  • geosing December 11, 2011 at 8:22 pm

    I neatly avoid the whole situation by not having a TV set in my living and trading areas. There is a TV in the house which I glance at when passing through – Last time I viewed CNBC was on 9/11/2001. Have no cable now – only some local channels.

  • RoloRolo December 12, 2011 at 11:25 pm

    Excellent article LC- Confidence in yourself and your strategy cannot be over-rated in this issue.

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