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Modern Speculators
A modern speculator, the one who uses stock exchange analysis, has the peace that he does not need to rigorously analyze the balances or financial statements of the companies or visit his broker to know about the latest rumors, because he knows that any underground movement that goes on, sooner or later, will be reflected on the prices of the stocks and as a consequence, through the statistic indicators he will be able to detect it and finally determine if it is the moment to buy or sale. Therefore, a modern speculator should be an informed individual to keep up to date his general culture of the happenings that occur, but in strict rigor, is only demanded at most, to rescue from the news the closing prices and amounts of transactions of the companies that compose their data base. The fundamental characteristic that the modern speculator needs to have is perseverance and rigorousness to continue a procedure in a systematic way and not violate the established rules, with last minute emotional impulses. The other characteristic that acquires capital importance is patience, since when he is putting the price curve of a stock into a graph on a daily basis; he needs to let the evolution of the price be seen on the computer screen, the purchase order based on the statistic indicators that have been established in a conservative way. This process would look like it were to last an eternity for an impatient person, but the mistake should not be made of rushing and interpreting the situations in the way one wished they would be, but how they really are. Rigorous application of a procedure previously established and which is consistent in time will be the only way the risk can be minimized. In order to not fall into collective euphoria and change one’s opinion formed by his method of rigorous analysis, it is better for the speculator to not get into the stock exchange personally so that he does not become contaminated with that variable and faddist environment. In case he desires to do so, he will have to show himself to be a very strong person and convinced of the certainty of his points of view so that the opinions of those that think differently from him do not influence him at all.
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