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 30, 2009, In Thought of the Day, by ElfLord
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
On August 27, 2009, In Thought of the Day, by ElfLord
Consistency is a major key to investment success. And consistency means first to preserve capital, second to have consistent profits, and then third to build wealth.
– Mike Moody
On August 27, 2009, In Good Articles, by ElfLord
MY ADULT LIFE began the day I understood persistence of trend. This undeniable trading truth dramatically increased my profitability and changed the way I look at the world.
Markets aren’t chaotic. Just as the seasons follow a series of predictable trends, so do market psychology and stock prices. Stocks are like everything else in the world: They move in trends, and trends tend to persist.
We are all looking for an edge. Low commissions and superior trade execution can only do so much. I have found that the biggest advantage you can have in the market is to trade with the trend. It’s the economic equivalent of having the wind in your sails.
In my experience, good traders seldom have strong opinions about the future, because they are humble enough to know their opinions don’t mean squat. The future will unfold no matter what any of us think about it. What most fundamental investors and message-board devotees fail to realize is that it isn’t our job to hypothesize how a stock should or could act. What matters is how a stock is acting at the time of our analysis. (more…)
On August 26, 2009, In Thought of the Day, by ElfLord
Most of us believe that money-making is a game that is played with forces outside ourselves, forces such as the economy, the stock market, interest rates, the Fed, government policies, employment statistics and the like. But as you move along a spiritual path and begin to get a taste of the power of your invisible self, you discover that money-making is merely a game that you play with yourself.
– Wayne Dyer
On August 25, 2009, In Thought of the Day, by ElfLord
In this business, you never stop learning. Let me put it another way. If you stop learning, you’re on your way to going out of business. Wall Street is a tough teacher but also a good teacher. If you have any weakness – arrogance, laziness, stinginess, cowardice, procrastination – the market will zero in on that weakness and make you pay dearly.
– Richard Russel