Archives of “rebound” tag

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Larry Fink’s $12 Trillion Shadow

  
Analysis, Economy, Education
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Though few Americans know his name, Larry Fink may be the most powerful man in the post-bailout economy. His giant BlackRock money-management firm controls or monitors more than $12 trillion worldwide—including the balance sheets of Fannie Mae and Freddie Mac, and the toxic A.I.G. and Bear Stearns assets taken over by the U.S. government last year. How did Fink rebound from a humiliating failure to become the financial fulcrum of Washington and Wall Street? Through a series of interviews, the author probes his role in the crisis, his unique risk-assessment system, and the growing concern he inspires.

Worth Reading ,Just click here

The Stimulus Packages Will Soon Lose Its Influence

  
Analysis, Education
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“I am not sure yet that the recession is already over because the numbers of unemployed persons in the United States is still increasing and there are several indicators that barely suggest a rebound on the economy , I think that also this year it will not get better because the stimulus packages will already lose its influence So I could imagine that we would not have a basic rebound and that the markets will rather correct.”

translated from a german TV video interview, April 2010

Cohan, Money and Power

  
  Education
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Goldman Sachs is not exactly the number one brand in the world. Admittedly, it’s hard to beat Apple these days in popularity contests. But Goldman doesn’t even come close: on the contrary, it’s a firm that people love to hate. William D. Cohan’s Money and Power: How Goldman Sachs Came to Rule the World (Doubleday, 2011) provides fodder for the Goldman haters, exposing among other things a long history of conflicts of interest.

Cohan’s long book is not, however, the stuff that tabloids (or Rolling Stone—think of Matt Taibbi’s piece, later expanded into
Griftopia) are made of. It’s carefully researched, with well-crafted portraits of Goldman’s leading players, definitely worth reading.

Since Cohan’s book has been extensively reviewed, for this post I decided to extract some lessons for individual traders from Goldman’s successes and failures. And Goldman, lest we forget, had a lot of failures.

One lesson is to exploit the weaknesses (or laziness) of others. For instance, a Goldman trader recalled that his boss always called Friday “Goldman Sachs Day,” the rationale being that traders at other firms were goofing off on Friday. If the Goldman traders came in on Friday intent on actually doing something while others had their guard down and were less competitive, their focused energy could make a big difference. (more…)

10 Top Trading Commandments

  
  Education
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  • Discipline trumps conviction. Don’t let your bad trades turn into investments.

  • Perception is reality in the market. Adapt your style to the market, and learn to accept the market as it is, not how you wish it was.

  • Play great defense, not great offense. Opportunities are made up easier than losses.

  • Don’t confine your thinking in terms of boundaries. Expect the extreme, and don’t miss major profit opportunities.

  • Know your companies. Hold your stock as long as it is performing properly, cut your losses fast, and don’t “hope” for a rebound.

  • Risk control is important. Always quantify your risk going into a trade.

  • Be diligent and thorough in your research. Do your homework, recap each day, and learn from your mistakes.

  • Don’t get caught in a situation in which you could lose a great deal of money for reasons you don’t understand.

  • Respect the price action, but never defer to it. When unsure, trade “in between.”

  • Emotion is the enemy when trading. Be greedy when others are fearful, and fearful when others are greedy.

    • 3 Tips for Traders from John Wooden

      
      Education
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    Here are three good suggestions from The Essential John Woodenthat are good for trading.
    1. Start and end every practice at exactly the same time.
    2. Expect failure. Assume every shot will be missed. Be ready for what comes, be it a tip in, rebound, fast break or something else.
    3. Get the fundamentals right. Double tie all shoelaces. Make the uniforms fit perfectly and get in position for every rebound the perfection of little things usually determines if a job is well done.

    Market Rules to Remember

      
      Education
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    Tradingrules-new1) Markets tend to return to the mean over time.
    2) Excesses in one direction will lead to an opposite excess in the other direction.
    3) There are no new eras — excesses are never permanent.
    4) Exponential rapidly rising or falling markets usually go further than you think, but they do not correct by going sideways.
    5) The public buys the most at the top and the least at the bottom.
    6) Fear and greed are stronger than long-term resolve.
    7) Markets are strongest when they are broad and weakest when they narrow to a handful of blue chip names.
    8) Bear markets have three stages — sharp down, reflexive rebound, and a drawn-out fundamental downtrend.
    9) When all the experts and forecasts agree — something else is going to happen.
    10) Bull markets are more fun than bear markets.

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