The minute the ego starts coming into our trading, it’s disaster. The minute we start doing stuff that is more about building up our ego, the more likely it’s going to show up in our results.
– Don Miller
On February 11, 2010, In Thought of the Day, by ElfLord
On February 10, 2010, In Thought of the Day, by ElfLord
I never buy stocks on tips, rumors, or inside information. It simply is an extremely unsound investment practice. Of course, tips, rumors, or inside information seem to be what most people are looking for. But, again, what most people believe and do in the market doesn’t work; so beware!
Certain advisory services and some daily business newspapers carry regular columns fed by Street gossip, rumors, tips, and planted personal opinions or inside information. This, in my opinion, is not the most professional approach, nor is it too sophisticated. There are far sounder and safer methods of investing in the stock market.
– William O’Neil, How To Make Money in Stocks
On February 9, 2010, In Thought of the Day, by ElfLord
To be a successful trader, you have to be able to admit mistakes. The person who can easily admit to being wrong is the one who walks away a winner.
– Victor Sperandeo, The New Market Wizards by Jack Schwager
On February 8, 2010, In Good Articles, by ElfLord
THE HARDEST THING ABOUT having money is knowing what to do with it. But in my experience, the best trades feel mandatory, like an act of self-preservation. There’s no time for thinking, considering, waffling. There’s no decision to be made.
That’s why, while bonds might seem risky given their strong run during the last few years, I’m compelled to be a bull right now, no matter what happens in Iraq.
First, and most important, the trend in bond prices is still up (with bond yields heading down). Regardless of the news cycle, the market moves in trends, which tend to persist longer than most people tend to believe. Indeed, more than any other reason, the best argument to be a bond bull is that the bond market itself is strong.
Second, as we pointed out last week, the prevailing attitude toward bonds these days is doubt. Talk to most pundits, and it’s just a matter of time before cash “on the sidelines” goes rushing back into stocks. Recent rallies have been just “safe haven” buying — nothing substantial, just a temporary “flight to quality.” Given the long bull market in bonds, buying them these days (and thus betting on lower interest rates) seems, well, a bit stupid. From a contrarian’s perspective, this is bullish for bonds. (more…)
On February 8, 2010, In Thought of the Day, by ElfLord
The man who is right always has two forces working in his favor – basic conditions and the men who are wrong.
– Jesse Livermore
On February 7, 2010, In Thought of the Day, by ElfLord
Keep alert, and aggressively monitor you investments. No bull market is permanent, and no bear market is permanent. No stock is a sure thing, and there are no stocks that you can just buy and forget about. The pace of change is great, and investors must expect and react appropriately to it. To act in your own best interests, you must be prepared, informed, and watchful of your investments. Complacency opens the door to surprise and disappointment. You must always be ready to cope with the changes that will confront you.
– Gary Moore, Spiritual Investments