Title: What You Can't Learn About the Stock Market
Headings: What You Can't Learn About the Stock Market
What You Can't Learn About the Stock Market
Key Takeaways
Stock Market Theory
Skill or Luck?
Consider the Time Horizon
Portfolio Diversification
The Bottom Line

Content: however, each situation is different, and what worked before may not work again. Investing in the short term is riskier than investing in the long term where volatility can average out. A portfolio should be diversified and regularly rebalanced. Stock Market Theory
There are reliable, consistent principles of asset allocation, arbitrage, short selling, and many other concepts and methods. However, a persistent problem with financial markets is that there are many unstable variables. With each situation, different factors play a role, and what worked or failed before, may now do the opposite. Skill or Luck? Learning the theory of the stock market is certainly a good place to start for new investors; however, it is also critical to recognize patterns of activity and behavior. Even with these skills, professional investors fail to make the right predictions, or they find themselves in the wrong market at the wrong time.