Warmed over palaver
I just read a column about endurance success that made my head spin. It extolled hard work, long hours, good nutrition, blah, blah, blah. Trust me, YOU could have written the article as it contained such gems as:
“I believe in hard work. I believe in discipline. I believe that if you sacrifice for the goals you want, when you achieve them, the reward is great.”
My gosh, why didn’t you or I think of that! I mean, I haven’t heard such insight since the last episode of “Oprah.”
The same BS rings true in the trading/investing world, I’m afraid. How many times has some “investment guru” appeared on TV talking about the fact that they “look at fundamentals, invest in undervalued companies, and take a long term approach.” (Just ONCE, I’d love to hear someone come on TV and tell us they’re strictly a momentum player, looking to buy high and sell even higher, fundamentals be damned!)
The fact is some these cliches are valid some of the time and at other times, they’re meaningless.
Hard work, long hours are the keys to success? Perhaps for some. But, in reality, it’s more productive hours that result in success. And those productive hours may actually mean less overall hours spent training.
Similarly, sometimes buying beaten down stocks is a terrific way to make money. But, you can also make nice money by buying stocks wildly overpriced that just keep going higher.
My point is that much of what you read is just lazy writing that falls back on easy platitudes. Don’t believe any of it, unless you see studies proving conclusively “a” is better than “b.” And that’s just a starting point. The real test is what works best for YOU. And quite often that flies directly in the face of warmed over conventional wisdom.