http://globalgrowthinvestor.com/186/how-my-trading-survived-a-closed-encounter-with-efficient-markets/ The Home Of Growth Investing Fri, 29 Aug 2008 03:10:18 +0000 http://wordpress.org/?v=2.5.1 http://globalgrowthinvestor.com/186/how-my-trading-survived-a-closed-encounter-with-efficient-markets/#comment-1019 abitarecatania Thu, 16 Aug 2007 02:53:41 +0000 http://globalgrowthinvestor.com/186/how-my-trading-survived-a-closed-encounter-with-efficient-markets/#comment-1019 The market would be efficient, except that it is not. People trade on fear, greed, which by nature is not efficient. As Buffet points out, people may have knowledge, but do not act. That is where the efficient market theory does not work. Just because you believe based on all information available that a stock is to high, does not mean you will have the courage to act on the knowledge. The market would be efficient, except that it is not. People trade on fear, greed, which by nature is not efficient. As Buffet points out, people may have knowledge, but do not act. That is where the efficient market theory does not work. Just because you believe based on all information available that a stock is to high, does not mean you will have the courage to act on the knowledge.

]]>