As we ring in the New Year it is often a good time to reflect on our strategies, performances, and perceptions (or misperceptions) regarding the markets. It is also a good time for self-reflection and philosophy challenging. One of the toughest internal challenges I battle regarding the markets is to separate what I was taught through my educational and corporate endeavors from the reality that the markets actually present. A finance degree and an MBA leave much to be desired when it comes to understanding the stock market. As a result, my traditional education often seems to be in conflict with what "hard knocks" trading experience and technical analysis has taught me.
Part of the issue is that the educational world is dominated by theories and assumptions that may prevail in a fictionally perfect world where everyone is rational and self-interested, but offers little to explain what really goes on in the stock market ... Log in or subscribe to continue reading.