Trading Stocks
Stocks
vary in price minute to minute - just put up a real-time streamer of your portfolio
and watch
Individual
stocks can trend differently from the general market - but they do trend
Reaction
of stocks to news is not predictable - sometimes a stock goes up on news of
improved earnings, and sometimes it goes down
Sometimes a stock just moves for no particular, observable reason
Higher
volatility for your portfolio - look at CHH, BLUD, ZBRA, DDN
Big
differences can happen during the day. Do you want to be a day
trader?
Selection
of stocks is more important than selection of mutual funds; however even the
most careful selection of stocks will have some losers. You are all welcome
to prove me wrong on this one - just tell my how to avoid the losers.
Psychology of trading is different from working for a living: hard work does
not necessarily pay off.
