| In this short article I am going to debunk the belief | | | | Well Professor, they neglected to tell you at IKE |
| that has been long-standing. The more "institutional | | | | University, that traders are very efficient (and are |
| education" you have, the better a trader you shall be. | | | | always forward looking), and once information is |
| This idea has been ingrained in us since we were | | | | released we discount it very quickly. That's when the |
| children. We were always told to look up to doctors | | | | fun begins we start running stops and exaggerate |
| or lawyers and engineers etc. After all they are sharp | | | | price even more to your detriment. I can hear all the |
| intellectual people. They have years of schooling | | | | college boys now "where is this going to stop its |
| behind them, therein lies the problem of us normal | | | | wrong." Well Professor an up move will stop when |
| guys and gals setting in limiting belief upon ourselves. | | | | the last buyer has bought. A down move will stop |
| That belief being we need to be intellectually | | | | when the last seller has sold. Simple stuff really. |
| educated, we need to listen to the talking heads on | | | | In my experience there has always been an inverse |
| the television Dr. Farnsworth of IKE Academy (I | | | | correlation between higher education and short-term |
| Know Everything Academy) says "the euro is going | | | | trading. I'm not here to insult all the intellectuals just |
| to 2.60 due to the imbalance of sugar, grain, and fish | | | | to point out what obstacles they may face. (Too |
| in Lichtenstein." I'm here to tell you that's not the | | | | much knowledge.) I have to admit I don't mind taking |
| case. | | | | a shot at them, all in fun. However the best traders |
| Out of all the doctors or lawyers you know, how | | | | highly educated or not have good street smarts. |
| many are successful traders? I would guess not | | | | What I mean by that is they go with the flow and |
| many, their lack of success has nothing to do with | | | | don't question the market. The main points I want to |
| their intellectual intelligence. It has everything to do | | | | get across are: |
| with short-term trading and not understanding some | | | | • You don't need to listen to the talking heads |
| key issues. What are the key issues? And why do | | | | they know no more then you. Rely on your own |
| they not know? One of their problems is that all | | | | Market Analysis. • In short term trading only |
| information taught at higher education levels in | | | | market timing systems based on price is what you |
| business schools is a fundamental analysis, and never | | | | should look at. • Concentrate on basic economics |
| does address the key factors driving price. Fear and | | | | and mass psychology. Keep it as simple as possible. |
| greed. This is what leads the intellectual people to | | | | So in closing remember a very important point, |
| scratching their heads and saying" wait a second that | | | | Markets can stay irrational much longer then we can |
| price is wrong, GDP dictates the Euro should be | | | | stay solvent. So "Hey Professor, Don't Fight The |
| lower why is it going up?" | | | | Tape! |