SIGN UP FOR OUR FREE NEWSLETTER & GET POWERFUL IDEAS DIRECTLY TO YOUR INBOX There are little tidbits of wisdom that I have picked up over my years; here is a list of some things that all traders should take to heart: 1. Don’t apply logic to the stock market So often I see people…
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…
Overview: I often say that normal people fail in the stock market. Normal people do predictable things that are destructive to their market performance; here is a list that most investors will find familiar. We have all made mistakes like these but mastery over the market requires you stop making these mistakes. Hang On to…
Take Money Out of the Decision Source: Stockscores.com Perspectives for the week ending December 2, 2011 What are your motivations for trading the stock market? If you a relatively normal person then it is likely that you trade to make money. However, I have found that trading to make money is dangerous because of the…
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….
Don’t Apply Logic To The Stock Market
Lesson 4: Be Flexible
Some of our closest friends and readers are“pure” fundamentalists. We can talk for endless hours (perhaps weeks) with little avail to convince them otherwise. We also have friends/readers that invest strictly on the underlying technicals and the same is true for them. Here, at Sarhan Capital, we infuse the most pertinent fundamental and technical analysis and have realized that this formula best matches our personality/trading habits. Asking which is “correct” or “incorrect” is a futile exercise since there are an infinite amount of “correct” and “incorrect” ways to invest and trade capital markets. The key is find the “best strategy” that fits your personality and trading habits and make it work for you.
Buy me 10,000- or whatever. If it goes up 1 point, buy more. If it goes up another point, call me. If it goes down 2 points, sell it. This sane, simple advice- unload losers, ride winners- became a source of enduring mystery for me: Why didn’t more investors embrace it? And why did so many…do just the opposite
Alan “Ace” Greenberg on The Rise & Fall Of Bear Stearns
“Top Down Trading” (TDT) was Jesse Livermore’s unique trading system which outlines how one of the world’s most famous speculators read the tape. Livermore emphasized the importance of keeping things simple by remaining as objective and unbiased as possible.