Investing & trading: April - June 2012 articles archive home
 
Need to plan
It is my belief that many quants, hedge fund managers, and investment bankers came to believe—consciously or not—that, by explicitly embracing and accounting for chance, they had tamed it.
Wednesday, June 27, 2012 ... more
 
 
Know thyself …
… and know thy foibles. Study the history of your emotions and your actions. Because at the extreme moments of fear and greed, the power of the daily price momentum and the mood and passions of 'the crowd' are tremendously important psychological influences on you.
Tuesday, June 26, 2012 ... more
 
 
Staying put.
And right here let me say one thing: After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!
Tuesday, June 19, 2012 ... more
 
 
6 keys
Why buy this particular stock, in this sector, now? You should have a specific reason to buy something, one that you can articulate in a sentence or two. Look at price; assuming your hypothesis is right – how high can it go? Consider upcoming catalysts.
Tuesday, June 12, 2012 ... more
 
 
Pit Bull lessons …
… from Martin Schwartz.

Whenever a stock has had a large three-day move in one direction, you do not want to be buying on the third day or selling on the third day of a down move. That's a sucker play.
Tuesday, June 5, 2012 ... more
 
Wisdom of Barton Biggs
Quantitatively based solutions and asset allocation equations invariably fail as they are designed to capture what would have worked in the previous cycle … as investors, we always have to be aware of our innate and very human tendency to be fighting the last war.
Tuesday, May 29, 2012 ... more
 
 
Hunches
The ‘hunch’ of a man who has watched the stock market for half a lifetime may not be without value. In such a case it doubtless represents an accumulation of small indications, each so trifling or so evasive that the trader cannot clearly marshal and review them even in his own mind.
Wednesday, May 23, 2012 ... more
 
Never wrong
There is a very true adage: “You can beat a horse race, but you can’t beat the races.” So it is with market operations. There are times when money can be made investing and speculating in stocks, but money cannot consistently be made trading every day or every week during the year.
Wednesday, May 16, 2012 ... more
 
 
Where charts fail
At a certain point, a price trend will become obvious … but, when can an investor identify a stock as a fast climber? Not until it has been going up quickly for some time. But that means it has come some distance already and that it has clearly entered the trend-chasing phase.
Wednesday, April 25, 2012 ... more
 
 
A common error
With experience, and with some grasp of what has consistently affected your judgment in the past, you should be able to determine at which times and under what conditions you function best … and when you should be extra-careful, or even stay away entirely.
Tuesday, April 24, 2012 ... more
 
A sound background
Trading is being young, imperfect, and human – not old, exacting, and scientific. It is not a set of techniques, but a commitment. You are to be an information processor. Not a swami.
Tuesday, April 17, 2012 ... more
 
 
On value investing
"... many securities must be examined before one is found that has any real possibilities for the analyst. By what practical means does he proceed to make his discoveries? Mainly by hard and systematic work." – Graham and Dodd .
Tuesday, April 10, 2012 ... more
 
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