Investing & trading: July - September 2011 articles archive home
 
Castle-in-the-air theory
John Maynard Keynes, the famous economist and investor, probably enunciated the castle-in-the-air theory best. It was his opinion that during periods of optimism ‘the crowd’ tend to build their hopes into castles in the air and that the professional investors are better served devoting their energies to predicting which investment situations are most susceptible to castle-building and getting in ahead of time.
Thursday, August 25, 2011 ... more
 
The firm-foundation theory.
The investment community has traditionally relied on one of two approaches to predict prices: the firm-foundation theory and the castle-in-the-air theory.
Wednesday, August 24, 2011 ... more
 
 
To survive the next crash.
You want to survive the next crash? Then follow Downtown Josh Brown's Rules for Surviving a Crash. For a start, acknowledge that it’s a crash.
Monday, August 22, 2011 ... more
 
What it takes
Mark Cook, of Stock Market Wizards fame, on what makes a successful trader: First, you have to have a complete commitment to trading and do it full-time.
Wednesday, August 17, 2011 ... more
 
 
Managing the downside
"It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong."

- George Soros
Tuesday, August 16, 2011 ... more
 
 
The cigar butt approach
A cigar butt found on the street that has only one puff left in it may not offer much of a smoke, but the “bargain purchase” will make that puff all profit.”
Thursday, August 4, 2011 ... more
 
10 simple rules
“There is no magic potion in the investment world,” warned Burton Malkiel in his introduction to The Random Walk Guide to Investing, “because one doesn’t exist."
Monday, August 1, 2011 ... more
 
 
Don't try
Disregard all prognostications. In the world of money, which is a world shaped by human behaviour, nobody has the foggiest notion of what will happen in the future.
Tuesday, July 26, 2011 ... more
 
 
Not a good idea
I never have the faintest idea what the stock market is going to do in the next six months, or the next year, or the next two. - Warren Buffet
Tuesday, July 19, 2011 ... more
 
 
The forest, not the trees.
The ones that hold out the promise of riches are frauds. The ones that deal with strategies in commodities or gold are too narrow. They will tell you how you might play a particular game, but not whether to be playing the game at all. The ones that are encyclopaedic, with a chapter on everything, leave you pretty much where you were to begin with – trying to choose from a myriad of competing alternatives.
Thursday, July 7, 2011 ... more
 
 
Value: A mercurial concept
Two life-long super smart students of the market can look at the price of a stock and come to exact opposite conclusions. Whatever approach you choose to determine “value”, it’s important to realise that there are a hundred other ways of getting an answer that may or may not confirm your answer, and that the Market’s behaviour may or may not validate your findings.

Tuesday, July 5, 2011 ... more
 
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