Posts filed under “Psychology”

Who do you trust?

I get some fabulous and informative email.

This one was from someone who was wondering about why they should follow my longer term calls if I missed the last short term move:

if i shouldn’t take your word on a
short term trade, how is it that i
should believe your long-term outlook? 

I found that email to be fascinating, so I responded in this manner:

1.  You shouldn’t take anyone’s word on anything — you should do your own homework.

2.  If you are going to rely on commentators for insight, I would
imagine you would rather rely on someone who is willing to admit error
than someone who is stubborn and/or arrogant.

3. You should go back and look at my many calls over the past 3 years.
Once you do that, and see the track record, you might be more inclined
to put some weight on my longer term opinions. (Of course, this would involve some work on your part)

p.s.   Read the Apprentice Investor series . . .

What else can you say to an email like that, other than:  "Sorry, I’m not infallible"

Category: Investing, Psychology

Santoli’s The Trader

Category: Markets, Psychology, Trading

Cramer on Today Show

Category: Psychology

Bad Moon Arising

Category: Economy, Investing, Markets, Psychology, Technical Analysis, Trading

You Know You are a Permabear When…

Category: Investing, Markets, Psychology

You Know You Are a Perma Bear When…

Category: Psychology

Thomas’s Ham & Eggery Guide to Inflation

Category: Commodities, Consumer Spending, Federal Reserve, Inflation, Psychology

Chart of the Week: Risk Appetite

Category: Investing, Psychology, Trading

You know you are a Permabull when…

Category: Psychology

Fundamentally Speaking . . .

Category: Earnings, Economy, Federal Reserve, Inflation, Psychology, Real Estate