I don’t know much about basketball, but I do know that if you’re confronted with a chair-wielding maniac like Coach Bob Knight, that you should listen to him. Surprisingly, he was most interesting speaker I have heard in years. Rather than relay his career/professional tips, I’ll instead regurgitate three stories he told to prove his points….
An old man and his grandson are walking a donkey along the road when a car stops and the driver says, “hey old man, you should let your grandson ride on the mule”. So the kid jumps on and they carry on.
Soon enough, another car stops and the occupant says, “hey kid, get off that donkey, you should let the old man ride”. They swap places and continue on their way. (more…)
Latest Posts
rssMANAGING RISK
Well, perhaps the best way is to emulate some of the trading principles used by the pundits of yesteryear who beat the stock market no matter the emotions and mechanics of the institutional herd. For instance:
Bernard Baruch – Some 70 years ago, he would research a stock, buy it, and then each time the stock rose 10% from his purchase price, buy an additional amount equal to his first purchase. If the stock began declining he would sell everything he had bought when the drop equaled 10% of its top price …
Baron Rothschild – His success formula was centered on the famous quote attributed to him – “I never buy at the bottom and I always sell too soon.” …
Jesse Livermore – This legendary speculator profited enormously by calling the various 1921 – 1927 advances correctly. In 1929 he reasoned that the market was overvalued, but finally gave up and became bullish near the top in the fall of that infamous year.
He quickly cut his losses, however, and switched to the “short side.” Livermore listed three major points for his success:
1. Sensitivity to mob psychology
2. Willingness to take a loss
3. Liquidity, meaning that stock positions should not be taken that cannot be sold in 15 minutes “At the market” …
Addison Cammack – A stockbroker from Kentucky who swore by the two-point stop-loss rule. “If you’re wrong,” he said, “you might as well be wrong by two points as ten.” He followed this method successfully and was one of the few bears to make a fortune on Wall Street and keep it …
Interestingly, all of these disciplines have one thing in common. They all adhere to Benjamin Graham’s mantra, “The essence of portfolio management is the management of RISKS, not the management of RETURNS. Well-managed portfolios start with this precept.”
Well, perhaps the best way is to emulate some of the trading principles used by the pundits of yesteryear who beat the stock market no matter the emotions and mechanics of the institutional herd. For instance:This Way Successful Traders Think & Make Strategy -Yes only 5% of Traders in World
Save money split a haircut…
Inside The Collapse, Part 1
Are We in Control of Our Own Decisions? -VIDEO
Banking "Explained" In 6 Minutes
Honor your stops!
In high volatile environment (now), you would often be shaken out of positions, only to see them reverse back in the desired direction. This is not a reason not to honor your stop losses. It is just a reminder that either your timing was inappropriate or that you don’t have an edge in the current market environment and therefore you shouldn’t participate until things change. There are times to buy, there are times to sell, there are times to do nothing.
In bear market, honoring your stop loss will save you form disaster. It will assist you to preserve capital, so you could live to trade another day. In bull market, it will free out money for better trading opportunities.
The only reason to hold a stock in your portfolio is if you would buy it at its current level and there aren’t any better opportunities for your money.
We are experiencing a rare event of market destruction that will lay down the foundations for the greatest wealth-building opportunities in our life time.
After the darkest hour of the night, the sun will rise again.
The 3 Laws that Govern Stock Prices
Contrary to popular belief by the majority of the general population and even investors and traders stocks are not tied to their fundamental values or even the companies that sold the shares to raise capital. Stock prices are tied to simply what the current buyer and seller in the market is willing to exchange ownership for. That is what determines price, nothing else. So the big question is what are the rules that govern the change in a stocks price?
The laws of economics governs price movement in the market. There are three laws articulated by legendary trader and market pioneer Richard Wyckoff that captures what causes current price reality and what changes it.
The Law of Supply and Demand
The excess of demand (buyers) over supply (sellers) causes a stock’s price to go up. The excess of supply over demand causes a stock’s price to go down.
The price is determined by the law of supply and demand.
The price moves up and down to balance the supply and demand to the equilibrium.
“The stock is only worth the other people are willing to pay for it”— (more…)
Every Trader-Must See This
Yes ,U Need Money + Mind + Method ++++++Target is must (Yes Daily/Weekly/Monthly )