Good Investing Lessons

There has been talks about end year rally during the earlier parts of this year. Particularly in February to March period when the market was suffering from 'temporary' set back. During that time, even though the European Debt crisis were looming, the Asian economy was still booming. However, as the time passes, the European Debt crisis becomes more apparent. Countries were finding it more and more difficult to cover up. More facts emerge and picture became clearer. The earlier investor pull back and market began the down trend again. In such time, we will invariably turn to tools that we think will help us to foresee such events. This is where macro economic theory comes in. However, for traders who are not well read on such topics, they want to use some thing faster and easier. Then, Technical Analysis comes into play. Using technology, TA can be very fast and handy. Here is a classic example of using TA: http://www.etfguide.com/research/705/8/The-Chart-That-Trumps-Anal...

I would like to share a great article that I had just read with all investors. Many gurus, seasoned investors always warn new investors to do their own analysis and research. Reading and referencing other people's work is fine, but, one must always know his own position and do complete analysis. As in the case of people who blindly follow Warren Buffett into Goldman Sachs and General Electrics in the 2008 crisis. Taken to Task: The Cult of Warren Buffett By Aaron Task | Daily Ticker – 9 hours ago Bank of America stock jumped over 9% Thursday on news that Warren Buffett is making a $5 billion investment in the bank. But, at $7.65, the stock closed more than a $1 below its high of the session and BofA shares were falling anew Friday morning, trading as low as $7.45 before stabilizing... ....... ....... ....... Moreover, investors who've followed Buffett into investments like Goldman Sachs and GE got burned, assuming they adhered to Buffett's dictum about ...