Investing & trading: January - March 2012 articles archive home
 
From Jesse Livermore
What makes a good stock speculator … is an aptitude for the game, a stomach for the ride, and the ability to see what is happening without emotion. The ability to make observations that others don’t and a good memory …
Tuesday, March 27, 2012 ... more
 
 
Lessons from Darvas
Nicolas Darvas has inspired generations of traders. His book, “How I Made $2,000,000 in the Stock Market,” is included on many recommended reading lists.
Tuesday, March 20, 2012 ... more
 
 
What to pick
There should be a clear, comprehensible business model, based on a distinctive capability that has the potential to create sustainable and appropriable competitive advantage. The only sources of fundamental value are tangible assets and competitive advantage.
Tuesday, March 13, 2012 ... more
 
A few more things to remember
The names of the big winners change every few years, but their fundamentals stay the same. Stunning earnings and sales growth have been the common denominator of all long-term big market winners.

Tuesday, March 6, 2012 ... more
 
 
Cutting losses
My philosophy is that all stocks are bad. There are no good stocks unless they go up in price. If they go down instead, you have to cut your losses fast... Letting losses run is the most serious mistake made by most investors. - William O'Neil
Tuesday, February 28, 2012 ... more
 
 
Biases & psychological quirks
Making money from stocks is easy enough if you can defeat the main enemy – ourselves. There’s no getting around the fact that we’re subject to a number of biases and psychological quirks that combine to destroy our investment returns. Here is a reminder of the most common ones, and what we can do about them:
Tuesday, February 21, 2012 ... more
 
Two to avoid
Phil Fisher, the legendary professor and investor, developed a reputation for finding a few very good investments, buying as many shares of them as he could afford, and holding them indefinitely. In his book, Common Stocks and Uncommon Profits, he warned investors of many types of investments to avoid.
Tuesday, February 14, 2012 ... more
 
 
Observations
If everyone likes it, it’s probably because it has been doing well. Most people seem to think outstanding performance to date presages outstanding future performance. Actually, it’s more likely that outstanding performance to date has borrowed from the future and thus presages subpar performance from here on.
Wednesday, February 8, 2012 ... more
 
Crystal Ball
Many traders believe that the aim of the a market analyst is to forecast future prices. The amateurs in most fields ask for forecasts, while professionals simply manage information and make decisions based on probabilities. Take medicine, for example ...
Tuesday, February 7, 2012 ... more
 
 
Reasons to sell
There’s only one time when selling is easy: when you've lost faith in your investment. If you sell when a stock is down in price you’re taking a loss and it usually feels like you’re giving up on something that you shouldn’t. It’s even more difficult to sell when a stock’s price is soaring.
Tuesday, January 31, 2012 ... more
 
 
Walton's rules
Stay focused, especially when the markets are moving.

Anticipate, don't react.

Listen to the market, not outside opinions.
Monday, January 23, 2012 ... more
 
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