Well, I am deeply convinced this is not necessary. See, there is a myth I encounter very often when talking to people about stock markets and investing. They (all) think, one ought to be very “professional”, very busy, very much of insider, minute-to-minute-glazing-at-a-monitor-trader to be successful. To know, what is up out there.

That’s because the most people of course have no clue of all the financial stuff and the news coming to them every time sounds irritating, sophisticated, technical etc. They apply a natural logic – a fundamental issue of our economical and social life is the devision of labor (and knowledge, means, professions etc.), the “professionalization” if you want. Everyone has to do want he knows, and in oder to know something right in our modern world, you should invest lots of time (and money?) and spend many hours a day doing it. Else it is somehow unimaginable.

Well, I think, as right this all can be in the “real” life, concerning speculation and investing it is not true. Speculation is a lazy job. You don’t need to rush. The news comes – that’s right – every second through the ticker, and the market is in a perpetual move. But, should this bother you that much?

I do not say, one doesn’t need do be informed. Yes, critical and careful observation of the developments in many areas is necessary. But not a crazy day-to-day-doing. You’ve got time. Think about it: you have damn lot time to take the right decision. Better spend time thinking about general, important things and factors, which will influence the next big move.

Even from the top of the new economy bubble, you didn’t have to react on the minute. Some months later a good, precise decision could have made it just right.

Or now – see, there was and is a lot of time to take the right positions. The market does not move that fast as supposed in Hollywood pictures.

On the stock exchange there are three types of actors: the Trader (yes, its actually the overall term, but the way it sounds to me is more concrete…), the Speculator and the Investor.

The Trader is involved in short term bets on the fluctuations of prices. He is news-driven, rumors-driven, acting on more or less daily and weekly basis. He is the one concerned about if the company X will report earnings 1 cent below expectations, or Bernanke will mention two vs. three times the word “inflation” in his next statement.

The trader has actually no plan, because the fluctuations on daily and even weekly basis are planless themselves. He has to be quick evaluating the sentiment of the moment, the current trend and take appropriate positions. He is the one going to Wall Street in the morning with the intention to place large number of long buy orders, but one minute after opening recognizes a sell pressure and turns and acts bearish.

The Investor is much of an exact opposite. He does actually not care a lot where the stock prices stand this … month. Even, sometimes, this year. That’s of course more of an abstract, emotional stance as every minute and everywhere the media shows us big headlines and stock-price tickers. Practically no escape … unable not to be told by some screaming reporter how Wall Street has closed today.

But the investor has a very long investing horizon, he has long term positions driven from very fundamental, many-times business-like considerations, and/or the “calm” wish to earn just a decent performance through the years. Rumors and news, Dow Jones one, five, ten per cent down – so what? The Investor is looking for a long term best place for his money. Have he found it, he stays for long. The Investor is looking for the “real” value, which emerges with growing business, with progress and not in the peculiarities of the stock market, of its irrationalities.

And somewhere in the middle, is the field of the Speculator. He is very well aware, that the stock markets are not strictly fundamentally grounded, that there occur great fluctuations and great disparities between economical development and valuation. That the bourse is a place of “fear” and “greed”, more importantly - of plain demand and supply. And due to “her”complex nature in the short term almost fully unpredictable, but in the mid term manageable.

So, I hope I could describe this three characters good enough. If not – I am sure to have often opportunity to add nuances.

As for me, I consider myself speculator.

The Americans do not use to say ‘bourse’, they say ’stocks’, ’stock exchange’, ‘Wall Street’… I don’t know if it is due to the peculiarity of the English language not to have that strong and distinguishing grammatic genders – but in all languages I know, ‘bourse’ is feminine. ‘Stock exchange’ is not. And that’s way I like to say ‘bourse’.

Well, I may have a somewhat ridiculous English, but I still may have something to tell you about the bourse. And now or later we will come to its feminine side, which is important. Very important.

Because you have to have spent some time with ‘her’ to know how hard it can be to understand the way ’she’ goes. I have spent some time. You too? - So let’s talk about her.