FYI: Investors need a wide range of abilities to succeed in the markets.
You have to understand basic math, statistics, and probabilities. You need a firm grasp on the relationship between risk and reward to understand the various securities, asset classes, and strategies. You must have an understanding of human nature — when it comes to others and yourself — is a prerequisite if you wish to enjoy longevity in the markets.
You also need to learn about financial market history. Many assume studying market history means trying to figure out how to beat the market going forward but I’m not talking about backtests here.
Financial history is important from the standpoint of learning how the world is constantly changing but the one constant in the markets is that it’s cyclical. And those cycles inevitably contain a vast number of booms and busts.
Regards,
Ted
