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Strategies & Market Trends : Natural Resource Stocks -- Ignore unavailable to you. Want to Upgrade?

To: barrcuda who wrote (20195)	1/19/2005 2:36:25 PM
From: isopatch	Read Replies (2) \| Respond to of 108905

<lol> Hear ya. But, you don't work for a W.S. investment bank do you? I used to work there many years ago. And, over time learned that I'd make money, more often than not, by fading the <sell side> research they pump out to the public. To the Thread: Many folks mistakenly think that publicly issued W.S. statements R intended to establish a good track record for the analysts who issue them. Actually? Nothing could be further from the truth. Anyone who's followed the W.S. pattern, for a series of economic cycles, discovers that top <analysts> (aka salesmen with credentials from Wharton or Sloan) keep their jobs AND receive fat bonus checks for horrific track records. The reason is simple: Their role is NOT to make correct public forecasts. It IS to get the public fully invested at or near important tops and selling shares heavily near important bottoms. This enables the firms high paying private clients AND the firms in house trading department to buy at bottoms and sell at tops. The above is, in fact, one of the principal reasons that surveys have consistently shown only 3 to 5% of all investors (and traders) make about 80% of the profits. It would be mathematically impossible for such a small number of people to make such enormous amounts of money unless the system itself were structured to for enormous numbers of average investors to buy and sell their 100, 500 and 1000 share positions so that the favored corporate AND exchange insiders (including the W.S. firms proprietary trading depts) can buy 100,000 or 1,000,000 shs at a time of the same stocks. So, what does the average guy do who wants to become more successful in the markets? IMHO, step ONE is to get over the all to common anger, resentment and negativity I see nearly everywhere I look on various discussion threads? Only then will they will begin to make serious progress in developing the knowledge and skills and an improved trading style that will bring greater success. W.S. has been structured as I've outlined, ever since the founding of the Republic, folks. It's not some recent conspiracy, or long term degeneration of what was once an open and honest financial system. In my own experience, beginning many years ago, found once I simple accepted the above reality about how W.S. really operates, the negative emotions became fewer and further between. Over time it was easier to be cool headed and therefore quicker in making a higher %age of good decisions instead of continually being whip sawed from chasing false rallies and then getting angry about it. Best of all, with a great deal less in the way of negative emotional baggage? Not only found myself making more money over the years, but also had a lot more fun doing it. Well, time to log off for the day, and let the rest you folks hold forth. I've rambled on more than enough for one day:o)) Cheers, Isopatch