Come Into My Trading Room
A Complete Guide to Trading
Chapter One
INVEST?
TRADE?
GAMBLE?
A newcomer to the market faces three paths that lead into a forest
full of treasures and dangers. The first path, for investors, goes
through the sunniest areas. Most of those who take it come out alive,
if not much richer. Another path, for traders, leads into the heart of the
forest. Many travelers disappear, but those who come out look rich.
The third is a shortcut that takes gamblers into the swamp.
How can you tell which path is which? You must choose your way
carefully because if you don't, you'll end up on the gamblers' path,
especially since it crosses both investors' and traders' trails. We'll return
to this question in the chapters on trading psychology.
An Intelligent Investor
Investors profit by recognizing new trends in the economy and buying
into them before the majority wakes up to opportunities. A knowledgeable
investor can earn huge percentage gains by holding his position
without being terribly active.
Back in the 1970s, I bought stock in a company called KinderCare,
which ran a chain of child care centers. It tried to make them as unifor ... read full excerpt from Come Into My Trading Room: A Complete Guide to Trading ebook
