The bigger the base, the bigger the move. And the bigger the top, the bigger the drop.
– Stan Weinstein
On August 31, 2009, In Thought of the Day, by ElfLord
On August 31, 2009, In Good Articles, by ElfLord
THE POPULAR MISCONCEPTION is that traders are foolish short-term gamblers while investors are the prudent, steady hands in it for the long term. But whether you call it trading or investing, the golden rule remains the same: Don’t lose money. While investment goals and styles are different, we are all gunning for the same result. Not great companies or funds with five stars, but consistent returns that outpace inflation.
As a trader, my goal isn’t to make trades all day long, but to secure a rate of return that protects my investors’ principal and makes them money…period. Saying it’s a tough market is just an excuse, and unlike investors who are “in it for the long haul,” I don’t see any compelling evidence that owning stocks for long periods of time is the best way to achieve that return. (more…)
On August 30, 2009, In Thought of the Day, by ElfLord
In a narrow market, when prices are not getting anywhere to speak of but move in a narrow range, there is no sense in trying to anticipate what the next big movement is going to be — up or down.
– Jesse Livermore, Reminiscences of a Stock Operator
On August 29, 2009, In Thought of the Day, by ElfLord
It is not the strength of the body that matters, but the strength of the spirit.
– JRR Tolkien
On August 28, 2009, In Thought of the Day, by ElfLord
The key is consistency and discipline. Almost anybody can make up a list of rules that are 80% as good as what we taught. What they can’t do is give [people] the confidence to stick to those rules even when things are going bad.
– Richard Dennis