N- Narrow attitude :
Majority of retail investors play for narrow price movements. Not being long term investors, they hardly benefit from the primary long term trend.
O- Opportunity Givers :
Often they buy and sell at wrong times. These kinds of investors give opportunity to genuine investors to pick good quality stocks at dirt cheap prices and sell at peaks.
I – Irrational:
They act irrationally. They move with the micro trends without any logic.
S – Short term view :
Investment horizons are very short and they often make silly mistakes.
E – Emotional:
They are very emotional . Greed and fear often eradicate their gains.
NOISE which is attributed to emotions will always remain alive. From time immemorial, the human being has remained emotional.
” In one important respect we have made practically no progress at all, and that is in human nature.” – Benjamin Graham
Though NOISE makes much harder efforts than Trend, the latter wins, always! Because those who follow long term trend , appreciate very well that NOISE can be heard when we are quiet.
“The quieter you become, the more you can hear.” – Ram Dass
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