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

Dem House vote-counter lacks health care votes now (AP)
The House's chief Democratic headcounter said Sunday he hadn't rounded up enough votes to pass President Barack Obama's health care overhaul heading into a make-or-break week, even as the White House's top political adviser said he was "absolutely confident" in its prospects.
Investors turn attention to Fed meeting (AP)
The stock market doesn't want any surprises from this week's Federal Reserve's meeting. It is widely expected that the Fed will keep the fed funds rate, its key lending rate, at a historic low near zero when it meets on Tuesday.
Memo: Investigators can't replicate runaway Prius (AP)
Investigators with Toyota Motor Corp. and the federal government could not replicate the runaway speeding reported by a Prius owner who said his car's accelerator stuck as he drove on a California freeway, according to a memo for a congressional panel.
Fed may hint at how long rates will stay at lows (AP)
Federal Reserve policymakers may signal at their meeting this week how and when the improving economy will lead them to start raising record-low interest rates.
Conn. would waive student loans in 'green' jobs (AP)
Connecticut is considering legislation to erase a portion of college debt for students who work in green technology and other industries.
China PM defends assertive trade, foreign policy (AP)
China sought Sunday to deflate rising pressure from the U.S. and other powers over Chinese economic policies and growing assertiveness in world affairs, with its prime minister promising cooperation to bolster the global recovery.
Boehner determined to kill Dem health care bill (AP)
The top House Republican says the GOP can defeat the Democratic health care bill that may reach the House floor this coming week.
China promises steps to boost imports (AP)
China's premier promised Sunday to increase imports to promote trade and appealed to other nations to oppose what he said was rising global protectionism.
China wants US reassurance over dollar (AP)
China's premier expressed concern about the U.S. dollar and called on Washington on Sunday to take "concrete steps" to reassure Beijing about the safety of its huge Treasury bond holdings.
Premier: China's yuan to remain `basically stable' (AP)
China's premier rejected foreign pressure over its exchange rate controls and said Sunday the Chinese currency will be kept "basically stable."

Approaches to Investing