Latest Posts

rss

Best advice ever given

  
  Education
#  #  #  #  #  #  #

A young man who worked for the great J.P. Morgan approached Mr. Morgan. Said the young man, “Mr. Morgan, may I have your advice. I own a portfolio of stocks and it’s not doing well, I can’t think, I can’t eat, I can’t sleep. I worry day and night. What do you think I should do?” Morgan with his fierce demeanor eyed the young man and growled, “SELL TO THE SLEEPING POINT.” That may be the best advice ever given regarding investing. The truth — I’ve often used it.

A Winning Mindset is Required To Succeed

  
Analysis, Education
  • A losing trader can do little to transform himself into a winning trader. A losing trader is not going to want to
    transform himself. That’s the kind of thing winning traders do.
  • The winning traders have usually been winning at whatever field they are in for years.
  • It is a happy circumstance that when nature gives us true burning desires, she also gives us the means to
    satisfy them. Those who want to win and lack skill can get someone with skill to help them.
  • The “doing” part of trading is simple. You just pick up the phone and place orders. The “being” part is a bit more subtle. It’s like being an athlete. It’s commitment arid mission. To the committed, a world of support appears. All manner of unforeseen assistance materializes to support and propel the committed to meet grand destiny.

Wisdom from William Eckhardt

  
  Education
#  #  #  #  #  #  #  #  #  #

1. What is the state of the market?
2. What is the volatility of the market?
3. What is the equity being traded?
4. What is the system or the trading orientation?
5. What is the risk aversion of the trader or client?
Regardless of how you trade or invest … you better have those answers in advance of betting real money. 

Best Disclaimer Language Ever

  
Education, Humour
#  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #  #

I like a legal department that has a sense of humor. This is the standard disclaimer that Contango Oil & Gas Company (MCF) includes with their quarterly earnings reports:

Lawyer Stuff
The future is unknowable. We have good intentions but all of our projections and estimates will be wrong, and could be materially wrong. Wildcat exploration is expensive, speculative and potentially dangerous. An offshore spill or explosion would be enormously expensive. We have insurance but it may not be enough. You could lose your entire investment. Don’t be lazy – read our 10-Q’s, 10-K’s and press releases, and if you lose money – please no tears.
“Don’t forget about risk-free T-bills in your portfolio…After inflation and taxes you’ll likely only lose 5-10% of your investment.”
– Contango V.P. Investor Relations

Don't Confuse the Concepts of Winning and Losing Trades with Good and Bad Trades

  
  Education
#  #  #

Think about itA good trade can lose money, and a bad trade can make money. 
Even the best trading processes will lose a certain percentage of the time. There is no way of knowing a priori which individual trade will make money. As long as a trade adhered to a process with a positive edge, it is a good trade, regardless of whether it wins or loses because if similar trades are repeated multiple times, they will come out ahead. Conversely, a trade that is taken as a gamble is a bad trade regardless of whether it wins or loses because over time such trades will lose money.

Go to top