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Chinese Medicine

  
Education, Life
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chinese_medicineQ: Doctor,  I’ve heard that  cardiovascular exercise can prolong life.  Is  this true?
 A: Your heart only good for so many beats, and that it…don’t waste on  exercise.  Everything wear out eventually.  Speeding up heart not make you  live longer; it like saying you extend life of car by driving faster.
 Want to live longer?  Take nap.

 Q: Should I cut down on meat and eat more fruits and vegetables?
 A: You must grasp logistical efficiency.  What does cow eat?   Hay and  corn.  And what are these?   Vegetables.  So steak is nothing more than  efficient mechanism of   livering vegetables to your system.  Need grain? Eat chicken.  Beef also good source of field grass (green leafy  vegetable).  And pork chop can give you 100% of recommended daily  allowance of vegetable product.

 Q: Should I reduce my alcohol intake?
 A:  No, not at all.  Wine made from fruit.  Brandy is distilled wine, that  mean they take water out of fruity bit so you get even more of goodness  that way.  Beer also made of grain.  Bottom up! (more…)

Three Wishes

  
  Education
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Everyday receiving hundreds of emails for Subscriptions and many Traders are asking these type of questions …….

Q:  Genie has granted you three wishes to help you improve your trading/investing skills. What would you ask the Genie?

A:  I would ask for three things: 1) better statistical analysis skills, 2) more time to devote to mechanical strategy development and research, and 3) straightforward guidance on what I need to do to improve the performance consistency of a few of my stock screens. The good thing with all three of these is that I don’t really need a “genie” to give it to me as each are within reach as long as I devote the time and effort.

18+1 Trading Rules for Traders

  
  Education
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  1. NEVER, EVER, EVER ADD TO A LOSING POSITION: EVER!: Adding to a losing position eventually leads to ruin, remembering Enron, Long Term Capital Management, Nick Leeson and myriad others.
  2. TRADE LIKE A MERCENARY SOLDIER: As traders/investors we are to fight on the winning side of the trade, not on the side of the trade we may believe to be economically correct. We are pragmatists first, foremost and always.
  3. MENTAL CAPITAL TRUMPS REAL CAPITAL: Capital comes in two forms… mental and real… and defending losing positions diminishes one’s finite and measurable real capital and one’s infinite and immeasurable mental capital accordingly and alway.
  4. WE ARE NOT IN THE BUSINESS OF BUYING LOW AND SELLING HIGH: We are in the business of buying high and selling higher, or of selling low and buying lower. Strength begets strength; weakness more weakness.
  5. IN BULL MARKETS ONE MUST TRY ALWAYS TO BE LONG OR NEUTRAL: The corollary, obviously, is that in bear markets one must try always to be short or neutral. There are exceptions, but they are very, very rare.
  6. “MARKETS CAN REMAIN ILLOGICAL FAR LONGER THAN YOU OR I CAN REMAIN SOLVENT:” So said Lord Keynes many years ago and he was… and is… right, for illogic does often reign, despite what the academics would have us believe.
  7. BUY THAT WHICH SHOWS THE GREATEST STRENGTH; SELL THAT WHICH SHOWS THE GREATEST WEAKNESS: Metaphorically, the wettest paper sacks break most easily and the strongest winds carry ships the farthest,fastest.
  8. THINK LIKE A FUNDAMENTALIST; TRADE LIKE A TECHNICIAN:Be bullish… or bearish… only when the technicals and the fundamentals, as you understand them, run in tandem.
  9. TRADING RUNS IN CYCLES; SOME GOOD, MOST BAD: In the “Good Times” even one’s errors are profitable; in the inevitable “Bad Times” even the most well researched trade shall goes awry. This is the nature of trading; accept it and move on. (more…)

10 common mistakes most traders make

  
  Education

1. Stubbornly holding onto losses.
2, Buying on the way down in  price.
3. wanting to make a quick and easy buck.
4. Buying on tips, rumors, split announcements, and other news events, stories, or opinions you hear from supposed market experts on TV.
5. Selecting second-rate stocks because of dividends or low P/E ratios.
6. Buying because of old names you’re familiar with.
7. Being afraid to buy stocks that are going into new high ground in price.
8. Cashing in small, easy-to-take profits while holding the losers.
9. Not being able to make up your mind when a decision needs to be made.
10. Concentrating your time on what to buy and once the buy decision is made, not understanding when or under what conditions the stock must be sold.

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