Investing & trading: October - December 2011 articles archive home
 
What Lynch looked for
From 1977 to 1990, Peter Lynch grew Fidelity’s flagship Magellan fund at an average rate of 29.2% per annum. Famous for preferring companies that had ‘business models he could draw with a crayon,’ Lynch encouraged investors to look for five things in a potential investment ...
Wednesday, December 14, 2011 ... more
 
 
Old, but good rules
The following rules from Richard Rhodes are simple. Sticking to them is what’s difficult.
Tuesday, December 13, 2011 ... more
 
 
Dick Davis truisms
Forget about buying a stock at the bottom or selling it at the top. Yes, somebody does, but that elusive somebody will not be you. It is unrealistic to think that you’re smart or lucky enough to buy at the very bottom tick or sell at the very top.
Wednesday, December 7, 2011 ... more
 
 
Some Templeton rules
Fifteen of Sir John Templeton’s rules for investment success: # The challenge is not simply making better investment decisions than the average investor. The real challenge is making investment decisions that are better than those of the professionals who manage the big institutions. # Invest – don’t trade or speculate.
Tuesday, December 6, 2011 ... more
 
Dick Davis truisms
In these days of instant communication, you’re not likely to get advance or inside information; few do. What’s more, a stock may not respond to news the way you think it will. The only advance news that’s likely to be of trading value is that which is a complete surprise when it’s released.
Tuesday, November 22, 2011 ... more
 
 
The first time
Assuming you have taken the necessary steps; have the money to lose, have a plan, can maintain discipline, and are willing to keep learning. The next step is to make your first trade. What you do after that depends on you and your ability to absorb and react to feedback.
Tuesday, November 22, 2011 ... more
 
 
Linda's rules
The key to success is in knowing yourself. If you don’t know who you are, the markets are an expensive place to find out. Have a plan, follow the plan. Keep records. Don’t be afraid to buy high and sell low. Buy into bad news, sell into good news. Isolate yourself from the opinions of others.
Tuesday, November 15, 2011 ... more
 
 
Observations
People who are very bright don't make very many mistakes. In a sense, they generally are correct. In trading, however, the person who can easily admit to being wrong is the one who walks away a winner. Besides trading, there is probably no other profession where you have to admit you're wrong.
Tuesday, November 8, 2011 ... more
 
 
One-sided
Students will explain to me why they think the market or a particular stock will go up. They’ll repeat all the good things they’ve read about or been told about by their broker. They’ll make a convincing case. Then I say, “OK, that’s column A (the positives). Now let’s hear column B (the negatives).”
Thursday, November 3, 2011 ... more
 
The trouble with EBITDA
Years ago Moody's analyst Pamela Stumpp penned a 24-page report outlining what she called the "critical failings" of EBITDA.
Wednesday, November 2, 2011 ... more
 
 
How & when
Don’t waste time trying to determine if a spike up will go higher, or a spike down will go lower. There’s no way of knowing.
Tuesday, November 1, 2011 ... more
 
Trading rules …
… from Tyler Bollhorn at Stockscores:Buying a weak stock is like betting on a slow horse – it’s retarded. Stocks are only cheap if they are going higher after you buy them.
Tuesday, October 18, 2011 ... more
 
 
It’s easier to tell which ones are not going to do well
Amongst the companies least likely to succeed are those that: are slow to meet reporting requirements: are on their second (or third) venture; have been renamed; can’t ‘walk the talk’; rely on share issues.

Monday, October 10, 2011 ... more
 
The Zurich Axioms
Max Gunther, lays out 12 maxims which in his words, “apply to any situation in which you put money at risk in order to get more money.”
Tuesday, October 4, 2011 ... more
 
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