Posts filed under “Rules”
This was one of my favorite pieces of his:
The Ten Harsh Financial Commandments
I) You will not buy low or sell high.
II) You will cut your winners and let your losers run.
III) You will wish you owned more of what’s going up and less of what’s going down.
IV) You will be fearful when others are fearful.
V) You will fight the trend.
VI) You will not buy when there is blood in the streets.
VII) You will spend too much time worrying about low probability outcomes.
VII) You will invest for the long-term, or until we get a ten percent correction, whichever comes first.
IX) You will go broke taking small profits.
X) You will not just sit there, you’ll do something.
If you’re not following the Irrelevant Investor, you are missing all manner of insightful musings related to his research.
I love this collection of Paul Tudor Jones insights and rules by way of Ivanhoff Capital: 13 Insights From Paul Tudor Jones 1. Markets have consistently experienced “100-year events” every five years. While I spend a significant amount of my time on analytics and collecting fundamental information, at the end of the day, I am…Read More
Steve Burns posted a nice list of rules for traders. It is a worthy addition to our prior lists of rules (most recently, here; all previous rules here) 10 Bad Habits of Unprofitable Traders 1. They trade too much. 2. Unprofitable traders tend to be trend fighters, always wanting to try to call tops…Read More
A few years ago, I started pulling together my favorite Trading Rules & Aphorisms. It turned out to be a popular post, and so we added “Rules” as a new category. Since then, I have taken to updating this sporadically (see this).
We are overdue for an update. What follows are the smartest and most insightful perspectives from traders, analysts, economists and investors on what to do — and what not to do — when it comes to markets that have been previously published on TBP.
Here is the latest update:
Trading & Investing Rules, Aphorisms & Books
• In Defense of the “Old Always” (Montier)
• The golden rules of investing (India)
These are more general rules, not necessarily about investing:
If you have any suggestions for any good lists of rules I may have missed, please link to them in comments. If they are worthy, they will get added to the list.
My own trading rules and favorite Trading Books are after the jump
“Capitulation” is the term used to define a selling climax that often marks the bottom of a bear market. It translates into “surrender” — giving in to the overwhelming need to just make the pain stop. Retail brokers tell tales of individuals bailing out, often saying things like, “Just sell, get me out, please make…Read More
1. You’ve got to get along. If you don’t have good people skills, you’ll never succeed, even if you run your own business. 2. Money talks. He who has cash has leverage, and someone always has more than you do. There’s rarely a deal between equals. 3. Leverage is not always about money. I.e. if…Read More
One of the more interesting aspects of the market in 2014 is how much it has managed to defy expectations. Consensus has been consistently wrong; indeed, it seems that any time there is an agreement of sorts on just about any issue, the opposite has happened. Merrill Lynch’s legendary strategist Bob Farrell put together “10…Read More
Jeremy Grantham’s quarterly GMO letter is out. It is a long rambling look at everything from Tesla to Fracking to Fertilizers to Food. But the narrative culminates with how as a young lad, Grantham made a trade based on a neighbor — legal inside information. He explains how that worked out, via his 8 lessons…Read More
We previously published Art Hurpichs’ Market Truisms and Axioms back in 2011. Art is a CMT with Day Hagan Asset Management, and he returns with an updated set of Stock Market Rules to Remember. Enjoy. ~~~ As you are reading this, we are in the process of moving our “youngest” to Virginia, as he prepares for…Read More
I like this list from Dougie: Debt is cheap. Debt is plentiful. There is the egregious use of debt. A new marginal (and sizeable) buyer of an asset class appears. After a sustained advance in an asset class’s price, the prior four factors lead to new-era thinking that cycles have been eradicated/eliminated and that a…Read More