The Stock Market is Easy
This is a little gameÂ to prove my bold headline. Have a friend make photocopies of a few stock charts.Â Black outÂ the stock name and symbol. Then cover all but the far left 1/4 inch of the chart with a piece of paper. It should look like this to start:
Now start with 1000 shares. The game is not complicated; you can buy, sell or holdÂ all your shares each time the paper is slid to the right. So from what you are seeing what would you do. If you play this game a few times you will see, that it is relatively easy to predict whether a stock will continue to go up or turn and go down. Keep track of your gains and loses. The last time I played I made $286K from an initial investment of $33K on two stocks.
It may be useful to throw inÂ a moving average. What was most interesting to me was that when approached as purely a game, it isÂ surprisingly easy to spot the trends in a stock and make the correct moves.
So Jon, why aren’t you rich then? Clearly the stock market is easy, it is my own psyche that isÂ the problem. Money is so deeply connected to my emotions that the thoughts of making it easily, or loosing it quickly, stirs meÂ deeply and clouds what should be an easy game.
I guess I’m still learning to let go of the greed and fear that make the stock market more difficult than itÂ needs to be.
Here’s the complete chart: