Tuesday, July 18, 2006

Important Stock Market Research

If you are planning on investing in the stock market, or any market, start with this important research.

Read old books.

By the time a book is written on "How I Made A Million Investing In Buffalo Chips," the market for buffalo chips is almost over. It works the same for housing, the stock market, and commodities.

Your average investment book author got lucky at the start of a market move - and the trend is mature by the time you read about it. While the "bandwagon crowd" may join a trend and profit from it for a while - they normally just start to enjoy the ride right before the wagon drops off a cliff.

A cure for this is to read old books.

Find a guru that did well during the end of the 1960s bull market, or right before and after the 1987 crash - and pick up their used books on Amazon. You will also find several investment books that have been reprinted several times - because they hold enduring value.

We as investors are moved by the same emotions that move the herd, a distant viewpoint may help you see the cliffs ahead so as to avoid the next stampede.

Old books can provide that distant viewpoint.




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