That brings us back to the central question; whether investing an art or a science. There is obviously an element of art to it which is why some fund managers manage to outperform other fund managers consistently. But more importantly, investing is a science because it is based on a body of knowledge and it also based on a basic set of rules.
Let me put it this way. There is a science to understanding stocks. You have to buy stocks, put stop losses and book profits in a scientific and methodical manner. That is the science part of it. You must also know how to pick stocks and how to place orders. That is the art part of it. Have you ever wondered why people make money in stock markets and others don’t? People who make money understand that investing is both science and an art. You have to apply the rules based on your judgment. A good investor will base trading and investment on rules about orders, execution, selection, monitoring etc. A good investor will also play the trading and investing make like an artist. Everybody can do it but some can really do it better than others. That is art.