Goldstein On Gelt

Does a stock market trader need to be lucky? Or is there a skill that can be learned to get stock market trading success? Jack Schwager, author of the Market Wizard series, examines the difference between having “luck” in stock market trading and having a well-informed system or algorithm to choose trades. Unfortunately, some investors think intuition is all they need to make great stock choices. Intuition and luck shouldn’t be the basis of trading decisions. How do you know if you just got lucky or if you discovered a winning algorithm? Jack emphasizes that vigilance and good research are the most important criteria for success with an investment portfolio. Being well-educated about the current market is really the best course for any investor. Is the P/E ratio a reliable measure of a good stock? Many investors depend on the P/E (price earnings ratio) of a stock as an indicator of whether it is a “good buy.” Doug explains how the P/E ratio is calculated, discusses whether it really is a reliable measure of a