Posts filed under “Apprenticed Investor”

Defining Features of Market Pros

I’ve been meaning to revisit a post by Doc Brett Steenbarger on the 5 defining features of "Market Pros," and the long holiday weekend is as good a time as any.

The Doc notes that these "five
features stand out. Pretty much everything else follows from these five:"

1)
The less successful traders are anticipating market movement and
trading accordingly. The highly successful traders are identifying
asset class mispricings and trading off those.

2) The less successful traders are trading particular instruments
and pretty much stick to those. The highly successful traders recognize
that any combination of trading instruments can be considered an asset
class and appropriately priced (and gauged for mispricing).

3) The less successful traders think of their market as *the*
market. The highly successful traders focus on interrelationships among
markets that cut across nationalities and asset classes.

4) The highly successful traders place just as much emphasis on
understanding markets as predicting them. The less successful traders
don’t ask "why" questions.

5) The less successful traders are convinced they have proprietary
information of value that they must not disclose to anyone. The highly
successful traders use their proprietary information to selectively
share with other highly successful participants, thereby gaining a
large informational edge.

The other interesting observation was a new phrase he coined: "analytical creativity."

Good stuff, Doc.

Category: Apprenticed Investor, Markets, Psychology, Trading

15 favourite investor fallacies

Category: Apprenticed Investor, Investing, Trading

A Deceptively Simple Timing System

Category: Apprenticed Investor, Data Analysis, Earnings, Fixed Income/Interest Rates, Markets, Technical Analysis

Eight lesson for Perplexed Perma-Bulls

Category: Apprenticed Investor, Investing, Markets, Psychology, Technical Analysis, Trading

Extreme Volatility

Category: Apprenticed Investor, Psychology, Technical Analysis

Secular Stock Markets Explained

Category: Apprenticed Investor, Earnings, Investing, Markets, Psychology, Technical Analysis

Honor the Discipline!

Category: Apprenticed Investor, Technical Analysis, Trading

Apprenticed Investor: 10 Lessons Learned in the Selloff

Category: Apprenticed Investor, Economy, Investing, Markets, Psychology, Technical Analysis

How Cheap is the Market?

Category: Apprenticed Investor, Data Analysis, Earnings, Investing, Markets, Psychology

More on Stocks Making 52 Weak Lows

Category: Apprenticed Investor, Psychology, Technical Analysis, Trading