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 different stocks, reading the news, talking to people, and finding out what industries you like. 

The more you learn the more likely your intuition will dig deep into your unconscious and pick stocks that have the most market appeal to you. The stocks will "feel right" and draw your interest because you may find some unique value in them even though you are not consciously aware of why. 

Instead of fighting...just go with it! Explore your interest. 

You don't want to leave everything to intuition. It only helps you explore areas of interest and potential investment options. Exploring ideas without restriction is one method but it should be followed up with more scientifically oriented analysis.

Some methods you can use to conduct an analysis can be found HERE. These are simple formulas that will help you use a method beyond intuition to make sound judgments. 

Knowing what you want to do and understanding the market is the first step in investing. After that you will want to learn some basic math and make calculations that are beneficial in your decision making process. Remember that most information you need is public. With time, patience and practice you can learn to slowly beat the market. 

Ethics and the "Power of Being"

Ethics is a stand for the power of being. It is not for the weak, feeble minded, or the faint of heart. It requires a belief and strength few can muster from deep within to make a stand for something greater then themselves. When entire social and business networks have bought into lower values and the need for self-gratification it can be difficult to make a stand for something more important.

The problem has been realized over and over in almost every great ethics case. People are subject to their social networks and must follow the rules set forth by society. There are higher order values that represent ideals in society and there are lower order expectations that create day-by-day rules of social engagement.

Look back at ethics cases where major foul play occurred and you will find a network of people who found it was easier to keep their mouth shut, play by the rules, and live by the expectations. They have almost no incentive to stand up for anything beyond what was offered for them today.

It always takes someone who is willing to take risks to expose the wrong doings of others. They must be connected to their social networks to understand what is going on but also disconnected enough to make a stand against behavior that impacts both themselves and society.

People do not stand up unless they believe in something greater then themselves. They may run into a web of legal buffoonery where justice is more akin to the price paid for an expensive Rolex then it is for any sense of higher purpose to society. Often....those with the deepest pockets spin the truth any way they want!

Standing up for ethics is the power of being. It is a power that says, "I stand for something better!" It is the whistle blower who wins in the long run-they own themselves. While others suck the life out of our American principles it is those who take a stand that have an internal compass that sets standards that others for others. Few things are accomplished by taking the road most often traveled.

America to Lose #1 Spot-Are New Economic Theories Needed?

Are seismic economic shifts of power on the way?According to the UK based Center for Economics and Business Research the U.S. and Europe will be declining in power and economic status. Central Asia will grow in strength leaving behind many of its previous Western mentors.

The first problem we as Americans face is the assumption that we will stay in power because we are American. The past doesn't always predict the future and without change we become stagnant in our thoughts and activities. The worst mistake we can make is to assume that doing the same thing will result in something new.

Our political leaders are trying to grapple important issues such budgets, higher education, civil rights and immigration but are more focused on party positioning than resolving these issues once and for all.  Larger economic change has yet to occur as we fail to grasp fundamental issues that draw today's attention.

America's economic models and assumptions will need to change if they are going to increase economic activity and ensure the country stays in the leading position over the course of the next few decades. The same rehashing of previous theories only encourages small improvements within existing frameworks.

To change our economy means we need to change our vantage point. We will need a paradigm shift that moves us from domestic oriented theories to international ones that better reflect the reality we live in. The world will become ever more interconnected and we have not yet embraced it.

There are current holes in how we approach the economy and we have been relying on outdated models that are leaving the nation in a weaker position every year. Even though some movement has been made with treaties and international exchange we have not yet grasped the idea that American should be the central place for creation and investment.

We are no longer low cost producers and will need to become superusers of world resources to turn out market leading products. America was built off of our innovative spirit and we have created complex layers of bureaucracy that have killed that spirit.  It is time to roll up our sleeves, drop politics and make meaningful change.

We must embrace the international environment, encourage new economic models, and lead the international economy through a stronger global engagement. Without truly fixing the fundamentals of our economy we will constantly be seeking some program or another to create small and futile fixes. America is large and by enhancing our regional capacities and putting them into a nation and international context can create meaningful in sites for improvement.

Polite, Persistent and Confident to Achieve Objectives

If we lived in a perfect world people would respect others and treat each other with civility and dignity. Unfortunately, this isn't always the case. People sometimes look for their own advantages without considering the rights and needs of others. This may be an overbearing boss, a company that fails to live by its obligations, or a negative co-worker that creates unnecessary problems. It could also be a policy run a muck! Being polite, persistent and confident can create positive change.

Here is the problem. At a deep biological level we are programmed to fulfill our own needs. When we are hungry we look for something to eat, if we are thirsty we find something to drink, when we are cold we find shelter. Everything else beyond food, shelter, reproduce is socially constructed.

Our needs become increasingly complex as we become increasingly complex. We think that money equates to innate skills, food is a source of comfort, popular friends leads to inherent value, and a promotion means we are worthier than others. 

Because we have these needs, and they are sometimes all consuming, some may overstep their bounds violating the rights of others. This means that getting something, even when it isn't actually earned, is an important psychological source of satisfaction among people who are not highly developed.

This idea applies to things like winning arguments, obtaining objects, showing one's positional power, or just about anything else that supports our self image. At the end of the day, if these are not based in a real need then we are putting value on them beyond what they are actually worth.

Because people have the capacity to push their needs on others it is necessary to stop such poor behavior in its tracks. Avoidance in this situation can work but only for so long if the other person keeps demanding something. When you step up and tell them no then you should consistently do so.

It may also work the other way. For example, someone may put something on your credit report or owe you something they were not entitled to. You have the right to be polite, persistent and confident in the face of their actions. They got what they wanted so all they have to do is hope you go away.

The problem is that it wasn't theirs to begin with. You have the right to continue to pursue change and ensure they treat you fairly. Without you doing so, chances are they will not have an internal sense of values that will gnaw on their conscious. Because they lack values, they will continue to behave in such ways that are a detriment to both you and others around them.

The next time you are faced by someone who seeks their own advantage at all costs make sure your needs are known. If they are not considering your needs then break contact with them. Be persistent with your beliefs and be confident that you are in the right. You have a right to live in peace and security without someone else unnecessarily causing problems.

The Successful and the Unsuccessful Student

Students come from many different backgrounds and abilities but these are not the deciding factor in their success. Some may be wealthy while others may be poor. Great school districts and solid educational background may be helpful but it isn't the key deciding factor in a student's ability to achieve. The one factor that differentiates great students from all others is.......

Motivation!

Without motivation there isn't much that will be accomplished. Students will not be able to stay on track and put the effort in to achieve their goals. With motivation the rest of one's background matters much less in the long-term success.

A person who is motivated can overcome any deficiencies in income, poor schooling, or background. They have the will to keep focusing and improving on their educational outputs.

Signs of a student with low motivation is lack of acceptance of critical feedback, failure to implement new ideas, turning assignments in late, not spending the time needed to complete assignments, incorporating improvements.

Signs of a student with high motivation is high class participation, correcting of errors, turning work in on time, checking resources, continuous improvement, and developing a workable process for education.

What wasn't mentioned is the actual grade. It is the level of improvement that counts. Students may start out with many mistakes but with motivation they can soon increase their grades and outcomes. This requires diligence that is drawn from motivation. Educational outcomes are heavily focused on personality and individual effort.

Can Your Business Use Psychodynamics?

Selecting candidates is big business and should be done with meticulous care. One wrong hire and it could cost the company a lot of money in lost revenue or production. Using psychodynamics may help in overcoming motivations and their potential beneficial or negative outcomes in the work place.

What is psychodynamics?

It is the study of candidates emotional and mental functions that lead to performance and outcomes. This study is important in uncovering employees that are likely to succeed with their employer and complete their job function appropriately.

Those looking at psychodynamics may include paper trails such as employment history, community relations, references and other important markers. For example a person could have a very rocky employment background unable to stay at an employer for more than a year.

This could mean the candidates creates problems wherever he/she goes or it could mean there are other factors involved. To use psychodynamics well it is important to also look at other indicators such as how they act and respond to specific questions about their employment in the interview.

The Internet is also offering other alternatives to understanding backgrounds but is not a perfect solution because people change and information can be misinterpreted. For example, I might have paintings out there because I am learning how to paint but a hiring manager may assume I don't have a scientific mind.

Personal bias can easily make it in the process so ensure that your company effectively cross balances perceptions, data, and information in a way that leads to more accuracy. There have been many costly mistakes and misinterpretations that lead to the rejection of great candidates and hiring of poor candidates.

Will the Economy Start to Tap Your Paychecks Soon?

You might be getting a raise soon. Your friend "the economy" says so! According to the Labor Department those applying for unemployment claims dipped to 267,000 marking a 42 week low. As the labor supply shrinks it becomes increasingly likely that wages will rise as skilled labor becomes increasingly in demand. The economic hands are likely to start tapping on paychecks soon.

Basic laws of supply and demand are at play here. As something becomes more difficult to find its value rises. It doesn't matter if you are talking about the latest XBOX game or labor supply. Good employees are hard to find and when employment rate dips companies must continually look at lower qualified candidates.

This naturally comes with a cost and improvement in labor conditions; at least for those who are actively engaged in the market. Pressure rises on companies to find candidates, train them to expectations, and then put them to solid work when the unemployment rate is under 5%. As their value and cost rise companies seek to also raise their productivity rate.

This creates a push to increase productivity to reduce the cost of labor and hire fewer employees. Automation and streamlining become popular methods to countering labor costs. In the long run this can create downward pressure on the employment rate but its effects are not felt until a significant time in the future.

Assuming that the economy continues to grow over the next year the pressure on the labor market is likely to increase and wages will continue to go up. In turn, companies will push for productivity and engage in more training. Eventually, a homeostasis may be found but this will take time as investments in the U.S. economy continue to improve until it no longer is a lucrative option.