Archives of “January 13, 2019” day
rssClassic Wall Street Quotations
Soros, Buffett, Templeton, Livermore, Rothschild – This is the remix. I’ve updated their classic quotations for the modern investment world. Vote for your favorites below…Enjoy!
“We simply attempt to be greedy when others are fearful and to make others fearful when we do not have enough long positions on our sheets.” – Warren Buffett
“Capital goes to where it can escape taxation and be used to pay employees in sacks of rice.” – Walter Wriston
“Stock market bubbles don’t grow out of thin air. They have a solid basis in the creation and marketing of ETFs.” – George Soros
“It takes 150 years to build an investment bank and only five minutes to convince you to sell me preferred stock in it at a 10% interest rate.” – Warren Buffett
“The four most dangerous words in investing are ‘It’s the Lightning Round!'”. – Sir John Templeton
“Only buy something that you’d be perfectly happy to hold if the market had a Flash Crash.” – Warren Buffett
“Markets can remain irrational longer than you can pretend that Treasuries yielding a half a percent are a safe buy.” – John Maynard Keynes
“History has not dealt kindly with the aftermath of protracted periods of my policies” – Alan Greenspan
“Obviously the thing to do was to be bullish in a bull market and bearish in a bear market and a renter in the housing market and open-minded to exotic sh*t at Jean-Georges’ Spice Market.” – Jesse Livermore
“Give me control of a nation’s money and I care not how much it owes China.” – Mayer Amschel Rothschild
“Man looks in the abyss, there’s nothing staring back at him. At that moment, man gets a text message, an eFax and two Twitter DMs. And by the time he’s updating his Facebook status and feeding his virtual farm animals, he has no idea what ‘abyss’ you’re talking about.” – Lou Mannheim, Wall Street
“How do we know when irrational exuberance has unduly escalated asset values? How about around 2007 when I was walking around with a crown and a scepter, spraying Crystal on chicks in the VIP room. I was probably a little irrationally exuberant right around then, holmes.” – Alan Greenspan
“Money is like manure, you don’t have to spread it around, you can just sell it to Potash Corp as fertilizer.” – J. Paul Getty
“The time of maximum optimism is the time to sell and the time of maximum pessimism is the time to start a blog and write 20 posts a day about gold.” – Sir John Templeton
“Rule No. 1 – Never Lose Money. Rule No. 2 – When you do lose money, call in Becky Quick and the camera crew for some folksy chit chat over root beer floats.” – Warren Buffett
Keep a trading journal – Analyze what you did right/wrong and improve your strategy
The right people and chemistry is more important than the right idea.
Thought For A Day
The difference between England, Britain and the UK
Thought For A Day
Mental Model: Herding Everywhere
Ego and Fear
But of course “ego” in trading reveals itself in subtler ways. I came to realize that after watching any chart for a while I would form an confident opinion about where the price was headed. “Okay, that’s a bottom there.” “Now the price is going to reverse and test that last support level.” Thinking I could predict the market was clearly egotistical.
So one big change has been to no longer guess where the price is going. I wait for trends where ANYBODY can see the price is going somewhere, and trade that trend. Makes for a lot more quiet periods of no trades but more successful trades when they do occur.
“Fear” is another big issue for traders and for me the issue is “not having enough of it”. I’ve been willing to bet the bank on a hunch and have been working to change that. Now when I enter a trade I use mental imagery to escalate my fears so that I trade more responsibly. Have you seen the iMax films “Everest” or “The Alps”. Currently I imagine I am high up the sheer face of a rock cliff and the only thing keeping me alive is my attention to the security of the pitons and the condition of the ropes. This helps me be more selective in my entries and in placing my stops.
How do fear and ego enter into your trading? Are you still trying to guess where price is going? Are you imagining yourself on the edge of a cliff, or are you already spending the profits you haven’t yet banked?
Waste Not, Want Not-VIDEO
Many recognize problems with market economies. The political right and left have different interpretations of what those problems are, and propose different reforms that would address the problem. Rarely do candidates running for office defend the status quo. Every one promises change and reform.
I see through a different lens. The most intractable problems do not come from capitalism’s weaknesses. After all it has shown an amazing ability to change, adopt, assimilate and appropriate. Instead, my work finds that the most profound problem emanates from capitalism’s strengths. Its strength lies in unleashing our productive powers like no other socio-economic system ever. We can produce goods and in volumes than prior generations could hardly even have fathomed. Indeed, we can produce more stuff than we can consume.