Who Can You Trust in the Marketplace?

The EU fiscal debacle continues, and news seems to break at any given moment. New findings increase volatility and the markets react accordingly. Those that lose all are losers, and those who win are..well, winners. The 90% who lose don't understand the psychology of the markets. In fact the losers are the ones who make up the majority of the reactions on Wall Street and are used by the 10% psychologist who tap into the thinking of the markets. This is all done on a short term basis. Long term will kill you if you have trust in this system.

Going back to the EU issue; Greece was called out by EU big heads for masking their true deficit problems using currency swaps administered by Goldman Sachs. These secret dealings were off the books transactions and were legal at the time. News like this leaves the average investor wondering "well, who can I trust nowadays?" More findings like this provides more incentive to not be average and join the 10% club to take advantage of short term swings.

The key theory to keep in mind is that when you are investing, enter with the purpose of making money within a set time based on a mood change. Be bold and get ready to fight the deceivers out there by playing their game. Buy when things seem right, but get out at the peak. Get back in and sell when things go awry. Don't show up to the party late, get there when it's live and leave when you're wasted. The same logic applies to investing. Protect yourself by paving a different path that is better than average.