Know How to Use Wall Street

I always have made this distinction about Wall Street: It’s simultaneously an investment community and a constant-trading medium. Both are essential.

But trading aspects can go to extremes. When extreme actions occur, there can be potential danger. It is thus essential that the average public understand how Wall Street operates.

I have found from experience that the average investor does well by avoiding trading extremes. That’s possible by sticking to a disciplined, favorite strategy and then forgetting daily market prices. You don’t need constant financial news, unless your investment strategy calls for it. Relatively few strategies do.

Short-term, in-and-out, frenzied trading by the pros is their game, not yours. (See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)