Tuesday, August 4, 2009

The Physical Path


These kind of investors are deeply involved in the stock markets. They come early to the office and stay late. They choose work over family. They always carry Newspapers to read whwnever time permits. They are always busy with breakfast meetings, lunch and more dinner meetings. They keep intouch with with a number of brokers as they believe it will increase their efficiency in the stock markets. They are overloaded with information. They continuosly monitor stock price movements. Market gossips excite them and they take decisions based on rumours. They tend to time the markets on such rumours and News.
Especially the Day traders take this physical path of investing. They spend their entire day collecting information and make decisions based on that information. They dont understand the tern long term strategy.
This path is based on the assumption that there are a lot of opportunities out there and you have to keep digging hard to be successful at investing. The current volatility in the stock markets is the result of too many people trying to invest by this method.