Investing For Dummy - Selected Resources For Investing For Dummy

by Ioannis Evangelos Haramis

Here is a small summary of the three major approaches to investing:

1. Fundamental Analysis

Truly superior companies exist, are sometimes undervalued by markets, and can be identified by mostly financial research. Earnings and dividends, stock prices and markets can be adequately forecasted. All these can be identified by analysis of their financial statements. Buy where forecasted price is greater than current price by a satisfactory margin.

2. Technical Analysis

Patterns in past price behavior of a security in question and the overall market can be used to direct profitable trading strategies. Some technical analysts also refer to a company's fundamentals in combination with its technical indicators.

3. Efficient Market Theory

No possible market-beating investment strategy exists. All information relevant to a stock's long-term price performance, including information not publicly available, is already present in the stock price for any given period of observation.

And here are two more "truly real" ways to approach investing:

1. The Proud Way and

2. The Humble Way.

The proud way is for those who believe that they're smarter than everyone else and can use their insights and abilities to make superior investment choices.

The humble way is for those who believe that they don't know everything. This humble approach leads them to study what has worked over the long term and then use it.

The path to achieving investment success is in studying long-term results and finding a strategy or group of strategies that make sense.
This strategy is the humble way... And it does work!

About the Author

Copyright © 2005 I.E.C. Haramis
haramis@greekshares.com
http://www.greekshares.com

Ioannis - Evangelos C. Haramis was born in Greece in 1951 and studied in Greece, USA and in Belgium. He has been active in the stock markets since 1972. Since 2002 he is New Business Development Managing Director at an Investment Bank and publisher of GreekShares.com

Yahoo! Finance: Top Stories
Top Stories from Yahoo! Finance

Despite hiring, US unemployment rate seems frozen
3 Sep 2010 at 9:18pm
[AP] - Unemployment is stuck at high levels even though some companies are hiring. The problem, government data show, is that too few jobs are being created for the growing number of people looking for work.
Stocks extend September rally after jobs report
3 Sep 2010 at 3:37pm
[AP] - The stock market had its first winning week in a month thanks to better news on the economy. The Dow Jones industrial average jumped 128 points Friday, its fourth straight day of gains.
UPS cargo plane crashes near Dubai airport
3 Sep 2010 at 3:08pm
[AP] - A UPS cargo plane with two crew members on board crashed shortly after takeoff Friday outside Dubai, officials said. The state news agency WAM, quoting the General Civil Aviation Authority, reported that the "bodies of two pilots" had been found at the scene, but UPS did not confirm that.
What now for Gulf? Fire complicates drill debate
3 Sep 2010 at 2:52pm
[AP] - What now for the Gulf? News of another oil rig fire in the Gulf of Mexico, so soon after the BP oil spill, has set off a wave of anxiety along the Gulf Coast and prompted calls for the government to extend its six-month ban on deepwater drilling.
Goldcorp to buy Andean Resources for $3.42B
3 Sep 2010 at 2:50pm
[AP] - Canada's Goldcorp Inc. said Friday it has agreed to buy Andean Resources Ltd. for about 3.6 billion Canadian dollars , trumping a rival bid from Eldorado Gold Corp.
Campbell reports Q4 profit rise on better margins
3 Sep 2010 at 2:48pm
[AP] - Summer is rarely a hot sales season for Campbell Soup Co., and this year's sweltering June and July made that even more true, but the company said Friday that cost-cutting and strong drink sales helped its net income climb.
Service sector grows at slower pace in August
3 Sep 2010 at 9:49am
[AP] - The U.S. service sector, the nation's predominant job generator, expanded for the eighth straight month in August although the pace of growth slowed, according to a trade group survey.
Latest Gulf oil rig problem differs from BP spill
3 Sep 2010 at 8:44am
[AP] - Unlike the blast that led to the massive BP spill, the latest oil platform fire in the Gulf of Mexico killed no one and sent no crude gushing into the water.

Approaches to Investing