Investor profit by recognizing new trends in the economy and buying into them before majority wakes up to opportunities. A knowledgeable investor can earn huge percentage gains by holding his position without being terribly active.
Investing requires a great deal of patience and an immense supply of self-confidence. To buy Chrysler after it was rescued from the brink of bankruptcy or Internet search engines before anyone knew what those words meant, you had to have a huge level of confidence in your ability to read the trends in society and the economy. All of us are smart after the fact; very few are smart early in the game, and only the tiniest percentage has the emotional strength to make a large bet on their vision and hold on to it. Those who can do this consistently like Warren Buffet or Peter Lynch, are hailed as superstars.
Option Basics
