Market Analysis and Market Traders

Investors are continually bombarded with market analyses, all of which fall into one of two categories:

1. The first approach is backward looking. It constitutes "chart reading" of past behaviour.
2. The second is forward looking. It anticipates interest rate changes, industry cycles, business and political conditions that might impact corporate earnings or investor attitude.

Trading on market movements seems easier and maybe more PROFITABLE IN THE SHORT RUN, but it is MORE DIFFICULT FOR MARKET TRADERS to ACCUMULATE LONG-RUN PROFITS AND HOLD ON TO GAINS.

In market analysis there are NO margin of safety; you are either right or wrong, and if you are wrong, you lose money.

Benjamin Graham took a conservative approach to investments. He viewed the stock market as a RISKY PLACE where investors can make money as long as they keep their heads about them.