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: There is no perfect approach to economic and financial issues that works every time. However, the longer the time horizon, the easier it is to apply the theory. Investing in the short term is more likely to be fraught with risk due to volatility than investing with a longer time horizon where the ups and downs average out. Portfolio Diversification
An overarching rule for the new investor is to diversify an investment portfolio. The portfolio should be rebalanced regularly, and it should not be subject to excessive fees imposed by a portfolio manager. The Bottom Line
While new investors should educate themselves as to the common mistakes that people make in investing, along with the scams and unscrupulous practices they may fall prey to, they should also understand that the market landscape is in a permanent state of flux. It's possible to minimize risks, but market uncertainty can never be eliminated completely.