Why you need to master the 90-second stock pitch
Archives of “January 6, 2019” day
rssThoughts on Short Selling
Never short based on price action. A stock that is going straight up can continue at least until you are bankrupt before falling to the ground. - Never short based on valuation. A stock might be expensive at 100 times earnings and it will be even more expensive at 200 times earnings.
- Unless you are hedging, your short positions should be 1/3 the size of your long positions.
- Believe it or not, short stocks that have high short interest. In general, short squeezes are a myth and stocks that have high short interest are usually shorted for a reason.
Never short based on price action. A stock that is going straight up can continue at least until you are bankrupt before falling to the ground. Thought For A Day
Wisdom From Bruce Kovner
On protecting emotional equilibrium:
To this day, when something happens to disturb my emotional equilibrium and my sense of what the world is like, I close out all positions related to that event.
On the first rule of trading:
The first rule of trading — there are probably many first rules — is don’t get caught in a situation in which you can lose a great deal of money for reasons you don’t understand.
On making a million:
Michael [Marcus] taught me one thing that was incredibly important… He taught me that you couldmake a million dollars. He showed me that if you applied yourself, great things could happen. It is very easy to miss the point that you really can do it. He showed me that if you take a position and use discipline, you can actually make it.” (more…)
Central Bank :A Definition
Psychology of Day Trading
Read today’s paper tomorrow. When you read yesterday’s paper each day with the
knowledge of what the market already did, you will affirm that this mornings paper with yesterday’s news has nothing to do with today’s market.
Your decision to exit a trade means you perceive changing circumstances. Don’t suddenly think you can pick a price, exit at the market.
Remember the “power of a position.” Never make a market judgment when you have a position.
The world’s largest central bank balance sheet is not the BOJ, the Fed, or the ECB… it’s actually the PBoC (China)
Prospectus for the United States – Would You Invest?
On the other hand, many of us are well-versed at going over a prospectus and Jim Grant of the Interest Rate Observer has put one together for the United States of America as it seeks to raise $16Bn for 30-year Treasury Notes. According to the prospectus: “The Bonds will mature on April 15, 2040. Interest on the bonds is payable semiannually on April 15 and October 15, beginning October 15, 2010. Before giving effect to the offering of the Bonds and the securities to be issued concurrently,
the United States had approximately $12,500,000,000,000 of indebtedness subject to the statutory debt limitation.”
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Stock Market in One Paragraph
Why do most traders lose money?
Because they would rather lose money than admit they’re wrong. What is the ultimate rationalization of a trader in a losing position? “I’ll get out when I’m even.” Why is getting out even so important? Because it protects the ego. I became a winning trader when I was able to say, “To hell with my ego, making money is more important.”