Intuition and Math as Methods of Picking Stocks
If people acted rationally the stock market would be one of the easiest places to make money. Simple mathematical formulas could tell us just about everything we need to know. Fortunately, people do not always act rationally and the mystery of the stock market is alive. The use of intuition and mathematics may just balance out our selection needs for better outcomes. No one has a golden formula that predicts outcomes. Some of the best investment firms use complex software, tools, and formulas and at times still get it wrong. They hedge their offerings in a way that helps ensure risk is minimized. Most of us do not have the ability to use these systems for our personal uses. They are expensive and complex. However, most people can use their intuition and follow up with a more concrete analysis to help determine when to buy and sell stocks. Intuition isn't about blindly picking any stock you want without consideration to market principles. It is about studying differe