Rule 4: Know Which Stocks to Buy and Sell
摘要
Once investors decide how to allocate funds across different asset categories they must decide which stocks to buy and sell, which involves three schools of thought: the technical school that focuses on the trading charts to determine the trend of different stocks, the fundamental school that focuses on economic theories and financial metric to determine which stocks to buy and sell, and the efficiency hypothesis school that advocates that investors buy a mutual fund or an ETF that matches a market index rather than buying individual stocks. Each investment method has its merits and demerits depending on the “context,” the conditions and circumstances of financial markets at different places and times, as well as the objectives and constraints of market participants.