There is an article in Business Week about Steve Cohen, who currently has the reputation of being the best stock trader around. How does he do it? He uses his clout to get information first and to get preferential treatment.

Some will read that article and realize the deck is stacked against them. That is correct. The deck is definitely stacked against the individual investor. But it is a wonderful example of why I try to follow the smart money rather than try to compete with them. It is also a good example of why I emphasize technical analysis over fundamental analysis. There is absolutely no way that I can compete with the big boys in fundamental analysis because I don’t have access to the information that they have access to. But when they act, they leave “foot prints” on the chart that give clues as to what they’re doing.

You can’t beat them, so if you want to prosper you’re better off joining them.

Larry

i appreciate your newsletter and site. i've never found anyone i so thoroughly agree with. we average folks can't have top level (insider) info - we must use tech analysis to "follow the elephants footsteps through the jungle."

did you see the article by marty zweig in TIME on how to find an investment advisor? he says that if your adviser tries to "time the market" or "use tech analysis" you should get up and walk out!

i know there are a lot of flakes out there - but following smart money is the only prudent way to invest/trade for above average gains.

-ja

Joe,

I didn't see the Marty Zweig article. But I find it ironic if not hypocritical that he would knock market timing. Trying to time the market is exactly what he does.

Larry