Posts filed under “Psychology”

Apprenticed Investor: Prepare for Battle

Tscm_1The latest "Apprentice Investor" column is up at the free site part of  It looks at who your competitors are in the market: Prepare for Battle

Here’s an excerpt:

It’s important to understand who your opponents are on the field of battle.
Sports and war metaphors abound, because they are consistent with what you are
going up against. Yes, you are up against Mr. Market, but your rivals are also
other people buying and selling stocks. They, too, are looking to produce
positive returns.

, who oversees the $10 billion endowment fund at Yale University, once

"Watch a pro football game, and it’s obvious the guys on the field
are far faster, stronger and more willing to bear and inflict pain than you are.
Surely you would say, ‘I don’t want to play against those guys!’

Well, 90% of stock market volume is done by institutions, and half of that is
done by the world’s 50 largest investment firms, deeply committed, vastly well
prepared — the smartest sons of bitches in the world working their tails off
all day long. You know what? I don’t want to play against those guys

That’s a brutal and, in my opinion, absolutely spot-on observation.

Prior columns can be found here.


Category: Investing, Markets, Psychology

NYSE Members Short Ratio

Category: Markets, Psychology

Brace yourself, Bertha — Its NFP Day

Category: Economy, Psychology

Dow Jonesy Enough for Ya?

Category: Markets, Psychology

Apprenticed Investor: Know Thyself

Category: Psychology

The Apprenticed Investor: Bull or Bear? Neither

Category: Markets, Psychology

More on One-Day Wonder or Key Turning Point?

Category: Markets, Psychology

Wages and Consumer Spending (Not a Pretty Picture)

Category: Economy, Psychology

The Apprenticed Investor: The Wrong Crowd

Category: Investing, Psychology

Confirmation Day? No

Category: Markets, Psychology