1. It is morally wrong to allow a sucker to keep his money 
2. Everyone has a trading strategy that won’t work
3. For every expert who says prices are going up, there is one who says they are going down
4. If you can drink it, don’t trade it
5. The market is not logical; it is psychological
6. The successful speculator is one who dies before his time comes
7. If you drop a dead cat far enough, it will bounce
8. The market goes your way the day after your stop was hit
ITS COROLLARY
9. The big move begins the day after your option expires
10. He who sells uncovered options goes broke
11. If you feel like doubling up a profitable position, slam your dialing finger in the drawer until the feeling goes away
12. The perfect strategy works every time until you start using it
13. If your strategy seems to be working well, you haven’t been using it long enough
14. The guy who owns the horse when it dies is the loser
15. When it comes to luck or skill, you can’t beat luck (more…)
Archives of “pigs” tag
rssJames P. Arthur Huprich's Market Trusms And Axioms
1. Commandment #1: “Thou Shall Not Trade Against the Trend.”
2. Portfolios heavy with underperforming stocks rarely outperform the stock market!
3. There is nothing new on Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again, mostly due to human nature.
4. Sell when you can, not when you have to.
5. Bulls make money, bears make money, and “pigs” get slaughtered.
6. We can’t control the stock market. The very best we can do is to try to understand what the stock market is trying to tell us.
7. Understanding mass psychology is just as important as understanding fundamentals and economics.
8. Learn to take losses quickly, don’t expect to be right all the time, and learn from your mistakes.
9. Don’t think you can consistently buy at the bottom or sell at the top. This can rarely be consistently done.
10. When trading, remain objective. Don’t have a preconceived idea or prejudice. Said another way, “the great names in Trading all have the same trait: An ability to shift on a dime when the shifting time comes.”
11. Any dead fish can go with the flow. Yet, it takes a strong fish to swim against the flow. In other words, what seems “hard” at the time is usually, over time, right.
12. Even the best looking chart can fall apart for no apparent reason. Thus, never fall in love with a position but instead remain vigilant in managing risk and expectations. Use volume as a confirming guidepost.
13. When trading, if a stock doesn’t perform as expected within a short time period, either close it out or tighten your stop-loss point.
14. As long as a stock is acting right and the market is “in-gear,” don’t be in a hurry to take a profit on the whole positions. Scale out instead.
15. Never let a profitable trade turn into a loss, and never let an initial trading position turn into a long-term one because it is at a loss. (more…)
The Trading Beast
The markets are no place to be unsure of yourself and wishy-washy, it is not a place for 2nd guesses, wishing, hoping, or gambling. If you want to win in this jungle you need to be an unstoppable beast .
Complete confidence in your system and method. You do not jump around in your trading or doubt yourself, it is not about you, it is the system. Either it wins long term or it doesn’t. Either you have confidence in it or you don’t, make up your mind.
- You control risk. You do not expose yourself to being ruined because your bet size is consistently what you are comfortable with. Ten losses in a row is only a small draw down. If you are not afraid of ten losses in a row, what is stressful? NOTHING.
- You play follow the leader. You are not the lone wolf, you are going with the market not trying to predict it. Your entries and exits are based on historical patterns not your personal opinions, you are not trying to beat the market you are trying to be on its side, it always wins.
- You will not quit.Your exit strategy for your trading career? Never. You plan to never quit playing the greatest game on earth. You are a trader, that is what you do. Not quitting in most areas of life means that you eventually win big, the market is no different.
- You don’t need a guru. Your winning system is your guru. You don’t need to ask for a fish, you know how to fish. You only listen if you can learn how to catch more and bigger fish and somebody is a better fisherman than you.
The markets eat up lambs, chickens, pigs, and sloths. However beasts eat well off their prey.
Market Truisms and Axioms
Commandment #1: “Thou Shall Not Trade Against the Trend.”
• Portfolios heavy with underperforming stocks rarely outperform the stock market!
• There is nothing new on Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again, mostly due to human nature.
• Sell when you can, not when you have to.
• Bulls make money, bears make money, and “pigs” get slaughtered.
• We can’t control the stock market. The very best we can do is to try to understand what the stock market is trying to tell us.
• Understanding mass psychology is just as important as understanding fundamentals and economics.
• Learn to take losses quickly, don’t expect to be right all the time, and learn from your mistakes.
• Don’t think you can consistently buy at the bottom or sell at the top. This can rarely be consistently done.
• When trading, remain objective. Don’t have a preconceived idea or prejudice. Said another way, “the great names in Trading all have the same trait: An ability to shift on a dime when the shifting time comes.”
• Any dead fish can go with the flow. Yet, it takes a strong fish to swim against the flow. In other words, what seems “hard” at the time is usually, over time, right.
• Even the best looking chart can fall apart for no apparent reason. Thus, never fall in love with a position but instead remain vigilant in managing risk and expectations. Use volume as a confirming guidepost.
• When trading, if a stock doesn’t perform as expected within a short time period, either close it out or tighten your stop-loss point.
• As long as a stock is acting right and the market is “in-gear,” don’t be in a hurry to take a profit on the whole positions. Scale out instead.
• Never let a profitable trade turn into a loss, and never let an initial trading position turn into a long-term one because it is at a loss.
• Don’t buy a stock simply because it has had a big decline from its high and is now a “better value;” wait for the market to recognize “value” first. (more…)
25 Golden Rules
#25-3/4. Do as I do – not as I say – but do it without delay! (NB: 13F-HR’s are too late!)
#25-1/2. The trend is your friend….errrr….ummm…..except when its not.
#25-1/4. Whatever kind of metaphorical market animal you are (bull, coq, chicken, weasel, whatever), always remember that Pigs Get Slaughtered.
#25. Buy “The Best of Breed” companies…..unless they are priced at levels preceding the moment when Pigs Get Slaughtered, or when the trend is not your friend, or I am saying the opposite of what I am doing.
#24. NEVER short “Best of Breed” companies…except when Pigs Are Getting Systematically Slaughtered in other “Best of Breed” companies (but don’t get piggy puking out the pigs).
#23. Cut your losses short and let your winners ride – but not when pigs are getting slaughtered
#22. No one ever made a dime by panicking … unless apparently you’re following the previous rule #23 which says you should cut your losses short and let your winners ride.
#21. NEVER double-down (except when you have material non-public information and deep pockets) or if you’re Ed Thorp, or if you’re playing at The Martingale Room.
#20. “Systems” always stop working (Even if they DID actually work at one point). So forget about asking about their “system”: what you really want to know about is their Plans B&C for when it DOES stop working (and why they’re not using them NOW).
#19. Diversify to control risk – except if you are Eddie Lampert
#18. Don’t own too many names – unless you’re Ed Thorp or diversifying to control risk per the above rule
#17. Invest in what you know – unless you don’t know a whole lot about those things.
#16. Buy when others are (almost finished being) fearful.
#15. Buy when there is blood in the streets – but only after it has dried a little bit. (more…)
Good Luck-Advice for Traders
Always seek out differing opinions and challenge your beliefs. Except when you know you’re right, then that other bullshit just becomes a distraction. Good luck with that.
It is very important to be flexible and open-minded. But invest with set rules and an iron discipline. Good luck with that.
Technical analysis and charts only tell you about what has already happened in the past. It’s much better to use the information from the future that we have when making decisions. Good luck with that.
Never run with the herd. It’s much better to be all alone on open ground, running in the wrong direction and wholly conspicuous to predators. Good luck with that. (more…)
Art Huprich’s Market Truisms and Axioms
Raymond James’ P. Arthur Huprich published a terrific list of rules . Other than commandment #1, they are in no particular order:
• Commandment #1: “Thou Shall Not Trade Against the Trend.”
• Portfolios heavy with underperforming stocks rarely outperform the stock market!
• There is nothing new on Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again, mostly due to human nature.
• Sell when you can, not when you have to.
• Bulls make money, bears make money, and “pigs” get slaughtered.
• We can’t control the stock market. The very best we can do is to try to understand what the stock market is trying to tell us.
• Understanding mass psychology is just as important as understanding fundamentals and economics.
• Learn to take losses quickly, don’t expect to be right all the time, and learn from your mistakes.
• Don’t think you can consistently buy at the bottom or sell at the top. This can rarely be consistently done.
• When trading, remain objective. Don’t have a preconceived idea or prejudice. Said another way, “the great names in Trading all have the same trait: An ability to shift on a dime when the shifting time comes.” (more…)
Some Money Launderers are “More Equal” than Others
“All animals are equal, but some animals are more equal than others.”
– George Orwell’s Animal Farm
It’s been many, many years since I read George Orwell’s Animal Farm, but the message conveyed in it will remain with me forever. The book is many things, but more than anything else, it is a portrayal and critique of human nature and the political systems that we create. For those that need a refresher, or have not read the book, here’s the basic plot.
There’s a farm headed by a Mr. Jones, who drinks so much he becomes unable to take care of the farm and feed the animals. Over time, the animals (in particular the pigs), decide human beings are parasites and the pigs lead a revolt and run Mr. Jones off the property. They change the farm’s name from Manor Farm to Animal Farm and create a list of 7 commandments. They are:
- Whatever goes upon two legs is an enemy.
- Whatever goes upon four legs, or has wings, is a friend.
- No animal shall wear clothes.
- No animal shall sleep in a bed.
- No animal shall drink alcohol.
- No animal shall kill any other animal.
- All animals are equal. (more…)
Market Truisms and Axioms
• Commandment #1: “Thou Shall Not Trade Against the Trend.”
• Portfolios heavy with underperforming stocks rarely outperform the stock market!
• There is nothing new on Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again, mostly due to human nature.
• Sell when you can, not when you have to.
• Bulls make money, bears make money, and “pigs” get slaughtered.
• We can’t control the stock market. The very best we can do is to try to understand what the stock market is trying to tell us.
• Understanding mass psychology is just as important as understanding fundamentals and economics.
• Learn to take losses quickly, don’t expect to be right all the time, and learn from your mistakes. (more…)
Difference Between Lender & Borrower
Rest of the World is busy watching the crisis in the Eurozone and Worried about the Finance to the PIGS Nation. This is the Difference between the Lender and the Borrower ! |
