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System or Strategy?? June 29, 2009

Posted by shaferfinancial in Finance.
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Many times there is confusion about what works in the world of personal finance/investing.  What has not been demonstrated to work is any “system.”  Whether this system is a complicated technical trading system, or a simple buy and hold/dollar cost average system over the long run all systems run into huge problems.  Why is this?  Because they all rely on what has happened in the past and as we know the future in unknowable and unpredictable.

What has worked is constructing a general strategy and using the human computer [our brain] to react to what happens in real time.  Any time any person tells you or you read about a system that works without the regular input of your intelligence you should know that you are asking for problems.  Now I ask the kindly reader, does it really make sense that investing is best accomplished without using one’s brain?  No of course not, investing is a complicated human behavior that requires us to use our intelligence and experience.  And if you are not prepared to do that, then don’t invest in the market!!!!!!

Now I have often posted on strategies and will do more in the future.  Strategies is what we design for folks so these people can use their brains within the given strategy to find success.  Active intelligence is what it requires.  Passive behavior will only fail you.

So I make this really clear for folks, you will find NO GET RICH SYSTEM at this blog.  Only strategies for building wealth!

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