Market Efficiency Makes It Impossible to Beat the Market over the Long

They drilled this into my head in college and did it again in graduate school. Why, oh why was I trying to get a degree in finance to get into the investment field if it was impossible for me to make any money at it? Why were all these classes full of people wanting to move on to careers picking stocks, making investments, or trading securities? Because some people do make good money as investors and traders. And because everyone believes that America is the land of opportunity, and with hard work, you can achieve some level of success.

Market efficiency is the belief that all investors have access to the same information and are making informed investing decisions. Some say that because these decisions are well informed and rational, current market prices reflect the proper value of a stock or commodity. But that simply isn't true. Traders make impulse purchases, and prices are always moving. Prices do get out of line, and it's possible to profit from the results.

Was this article helpful?

0 0
Insiders Online Stocks Trading Tips

Insiders Online Stocks Trading Tips

We Are Not To Be Held Responsible If Your Online Trading Profits Start To Skyrocket. Always Been Interested In Online Trading? But Super-Confused And Not Sure Where To Even Start? Fret Not! Learning It Is A Cakewalk, Only If You Have The Right Guidance.

Get My Free Ebook


Post a comment