Prediction Traps
#judgment #speculation
Benjamin Graham warns about the seductive danger of stock market predictions. While investors know they shouldn't take daily market forecasts seriously, many still do, believing professional predictions must be more reliable than their own judgment. This seemingly innocent habit, Graham explains, often transforms careful investors into speculative traders. "During a sustained bull movement," he notes, "when it's easy to make money by simply swimming with the speculative tide," investors gradually abandon fundamental analysis for the thrilling game of "beating the market" - forgetting that they themselves are the market they're trying to beat.