Abo_Ghada
17-06-2002, Mon 7:32 AM
I will post it in Al-Moasher too
Salam all:
I am a new member here and I really like reading some of the interesting discusions in this room. I notice that most of the participants don't have the right and enough knowledge of the investment science -if it is science at all!!- The knowledge that is essential for any stock market investor. And since I don't want anyone of you guys to loss more money in this damn stock market. I would like to share some of my experience with you starting with what I considered to be the most important lesson in any market and that is the MARKET EFFICIENCY.
MARKET EFFICIENCY is the term refered to the instant adjustment of the market prices to any new information. When the market has a high transparency and high liquidity- which is the case in the U.S. Stock market- prices tend to instantly adjust themselves to reflect and all available information. Based on this theory, it is impossible for anyone to consistently profit from the market or in other word no one can beat the market using only available public information. The theory of MARKET EFFICIENCY has been tested and examined extensivily in the academia and most studies concluded by supporting it.
It is important to know that the public information includes Macroeconomic level news, Corporate level news, rumors, investment strategies, recommendations, all technical analysis tricks and strategies, to make it short it includes all what you know about the investment and the market.
To be completed next time...l
I am sorry I cannt type in Arabic because I don't have an Arabic windows. If you guys find it benefitial, please let me know so that I would continue this series, Otherwise, I set back and do what I have been doing before and that is to read your comments and ideas.
Bye
Saleh Alharbi
Salam all:
I am a new member here and I really like reading some of the interesting discusions in this room. I notice that most of the participants don't have the right and enough knowledge of the investment science -if it is science at all!!- The knowledge that is essential for any stock market investor. And since I don't want anyone of you guys to loss more money in this damn stock market. I would like to share some of my experience with you starting with what I considered to be the most important lesson in any market and that is the MARKET EFFICIENCY.
MARKET EFFICIENCY is the term refered to the instant adjustment of the market prices to any new information. When the market has a high transparency and high liquidity- which is the case in the U.S. Stock market- prices tend to instantly adjust themselves to reflect and all available information. Based on this theory, it is impossible for anyone to consistently profit from the market or in other word no one can beat the market using only available public information. The theory of MARKET EFFICIENCY has been tested and examined extensivily in the academia and most studies concluded by supporting it.
It is important to know that the public information includes Macroeconomic level news, Corporate level news, rumors, investment strategies, recommendations, all technical analysis tricks and strategies, to make it short it includes all what you know about the investment and the market.
To be completed next time...l
I am sorry I cannt type in Arabic because I don't have an Arabic windows. If you guys find it benefitial, please let me know so that I would continue this series, Otherwise, I set back and do what I have been doing before and that is to read your comments and ideas.
Bye
Saleh Alharbi