Investors are the ones that know it better, but traders don’t have to know anything. They just have to be fast. That may sound silly, but it is the truth.
The small investor literally has to know it better. In fact, they have to be the wiseacre. There are two reasons:
- The market is always right. Wrong, our small investor has to be even more right, otherwise they won’t make a profit. A fundamentalist has to find stocks that are undervalued. The investor has to know it better than the market per se.
- There are large fund managers, managing a thousand or a million times what the small guy has. Of course they have the better resources, the better data, and a staff working full-time. They are better connected and likely even better educated. Our small investor has to know it also better than the big guns…
Most likely the small investor is not any better than the market or the large players. The opposite seems to be more plausible. Yet, small investors don’t see this.
The trader instead accepts that he is a zero. Trading just needs the right trading system and nothing more.
Also not true. You will need discipline and the right trading psychology. That’s not easy, but it should be easier than to know everything better than all others.
For a more in depths story about traders and investors read this:
Especially if you are an investor, you should do so. You will find the dirty secret of the stock market that has been hidden from you for so long and that is so hard to believe when you finally find out about it.