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Losing Teaches A Lesson
I have yet to meet a trader who has made money on 100% of his or her trades. We recognize that losing in the stock market is part of trading, understanding that the stock market can not be predicted with complete certainty. Despite this admission, most people still get very frustrated with losing and…

Do Not Think
You cannot expect to do well in the market if you look at investing in a normal way. By definition, being average is doing what most other people do and since investing is largely a psychological game, doing what other people do is only natural. Average results come from normal people acting in normal ways….

Gambler or Trader?
Gambler or Trader? Source: Stockscores.com Perspectives for the week ending January 8, 2013 This week’s Trading Lesson Many people think that trading the stock market is a form of gambling, making the markets of the world not much more than giant electronic casinos. For many who trade the market, gambling is exactly what they are…

The Trader Test
This week’s Trading Lesson Source: Stockscores.com Perspectives for the week ending January 14, 2013 Here is a test. If a bat and a ball cost $1.10 together and the bat costs $1 more than the ball, how much is the ball? Do you have your answer? If you are like the majority of people, you will…

Focus on Probabilities, Not Possibilities
The Great Disconnect: Wall Street vs. Main Street The S&P 500 hit a new all-time high this week and topped the psychologically important 2,000 level for the first time ever. The S&P 500 is up approximately 8% for the year, after rallying a very impressive +29% in 2013! If you lived on another planet and…

Know What People Do, Not What they Say They Are Doing
Know What People Do, Not What they Say They Are Doing Source: Stockscores.com Perspectives for the week ending March 20, 2013 This week’s Trading Lesson Investors have many choices on how to analyze the stock market. Most use some form of fundamental analysis, looking at company information to determine whether the stock’s price is more…