Posts filed under “Rules”

Top 10 Trump Rules

1. Money changes everything.

If Donald Trump were poor, he’d have no traction. He gets attention, and in many cases a pass, because he’s a billionaire. That’s the nation we live in, one in which the rich have the power and the poor believe the loaded are better than they are. Or, that they too can become a billionaire, if they just work hard enough, even though statistically odds of upgrading are better in Canada and Europe. The rich have been crapping on the downtrodden poor for so long they believe it. We watch the Kardashians, we believe Warren Buffett and Bill Gates are saints, is it any wonder people look up to Donald Trump?

2. Television is the most powerful medium in America.

It turned Howard Stern into a household name and it did the same for Donald Trump. If you’re on television you’re a star. What is the goal of the YouTube and Vine stars? To be on TV! It’s a hurdle that’s hard to jump. If Snooki and Kim Kardashian could be built by television, it’s not hard to understand Trump’s mindshare/traction.

3. Runaway media.

Insiders control the story, at least they believe they do. They said Trump was dead after his comments about McCain, ditto regarding his comments about Megyn Kelly. But what the internet era has taught us is that stories outside the usual narrative start online and traditional news media is the last to come on board. And that traditional news media is often wrong. And that what it likes best is ratings. Trump is irrelevant, soon to be forgotten, a footnote in history, even smaller than that of Ross Perot and Ralph Nader, but don’t expect any perspective from the media.

4. Media lasts longer than those it covers.

Trump will long be forgotten whilst Megyn Kelly continues to testify. Keeping the story going is nearly impossible, which is why Kim Kardashian tweeted a naked pregnant photo today. She wants to stay in the public eye, and it’s hard to do this if you’re not outrageous. Want to get mindshare? Create a new story every day, the crazier the better. Drake drops mixtapes while old wave acts work the same album for years. That’s a great way to be forgotten. What Taylor Swift does best is keep her name in the news. You should follow her example if you want a lasting career. Then again, getting started is so difficult, it’s best to be on TV! (But don’t think being on late night shows, certainly other than Fallon, makes a difference. And never forget that YouTube is narrowcasting, you may have a 100 million views, but it’s to a self-selected group, TV allows you to reach beyond them.)

5. Fox News is not as powerful as you think.

It blinked. Trump brought the outlet to its knees. Fox only mentioned Trump’s Megyn Kelly blood comments once, CNN more than 50 times. Read here

(Furthermore, ever since Jeff Bezos bought the “Washington Post” it has greatly improved. How did he do this? BY SPENDING MONEY! Our entire nation has a hedge fund mind-set. Reduce head count, strip the assets, take out your share and then pawn whatever’s left on the next loser. You make money by spending money, and he who is cutting back is ultimately losing.)

6. The squeaky wheel gets the grease.

Sports is the best example, there they call it “working the ref.” That’s what Trump has done here, he’s bitched loudly to get the media to blink, Fox certainly has (once again, read that WaPo article linked to above). Trump has belly-flopped like an NBA player, he’s bitched and whined and has refused to go away, has refused to apologize, he’s the perfect American, where no one makes a mistake and bluster is everything, and you wonder why our nation is in trouble…no one can learn anything, no one can adjust their opinion, no one can say they’re wrong.

7. Don’t blink.

It may be a suicide mission, but you can’t give up, you can’t question your desire and your goal, that’s how you break through the noise. Once you’ve made it you may be revealed to be a buffoon, but few make it. Trump has been trying to run for President for decades, this is the first time it’s worked.

8. Gimme some truth.

Actually, I don’t believe Trump believes all of what he says. He’s looking at endgame, and he knows people are frustrated by politicians and want to hear something that sounds passionate, from the inside. I’m a dyed-in-the-wool Democrat but when Hillary Clinton said her favorite book was the Bible my eyes rolled and I prayed someone else would run. Trump appears to be telling his truth. Clinton appears to be triangulating. If you want to succeed today you must have the appearance of authenticity, credibility is even better, but that’s even harder to achieve. Trump resonates with a minor part of the public which is sick of being cast aside, which knows its reality and wants to believe someone else is talking about it.

9. We live in a star economy.

I watched the debate because Trump was on it, without him I’m passing. And even though he was belligerent, he had a patina of real, he didn’t seem to be adjusting to placate a theoretical voter who might not even exist. His competitors were so phony and so FOS that I was rolling my eyes.

10. In the land of the blind, the one-eyed man is king.

Trump may have a bad hairstyle, but he looked more put together than so many of his compatriots, who were not wearing expensive suits and furthermore had worse hair, transplants and combovers and what exactly is that on the front of Rand Paul’s head? If you want our respect, dress for success. Nixon lost to Kennedy because he looked like a schlump, and these guys don’t even get a stylist. I don’t want someone who doesn’t understand the game they’re playing. Schlumpiness is Bernie Sanders’s shtick, but aren’t the Republicans supposed to be the party of the rich? And put together?

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Category: Politics, Rules, Think Tank

New Rules

1. You’re a musician, not a recording artist. It’s 2015 and not only have recording revenues declined, the whole world of music has gone topsy-turvy. Yes, there are a few superstars who base their careers on successful recordings, but everybody else is now a player, destined to a life on stage. This ain’t gonna change,…Read More

Category: Music, Rules, Think Tank, Weekend

Arthur Zeikel’s Investing Rules

Arthur Zeikel, president of Merrill Lynch Asset Management, sent his daughter a letter teaching her some investing basics. Enjoy! Personal portfolio management is not a competitive sport. It is, instead, an important individualized effort to achieve some predetermined financial goal by balancing one’s risk-tolerance level with the desire to enhance capital wealth. Good investment management practices…Read More

Category: Apprenticed Investor, Investing, Rules

The Ten Harsh Financial Commandments

Mike Batnick is the head of research for RWM; His tumblr is an outstanding assortment of real time analysis, data and perspectives. 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…Read More

Category: Humor, Investing, Rules

Paul Tudor Jones: 13 Insights

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

Category: Apprenticed Investor, Investing, Rules

Bad Habits of Unprofitable Traders

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

Category: Rules, Trading

Investing/Trading Rules, Aphorisms & Books (Summer 2014)

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

Jeremy Grantham: Investment Lessons Learned Over 47 Years (Mistakes Were Made)

Sir John Templeton 16 Rules For Investment Success

Bernard Baruch: 10 Rules of Investing

10 Lessons from 1987 Market Crash

Livermores Seven Trading Lessons

Bob Farrell’s 10 Rules for Investing

James Montier’s Seven Immutable Laws of Investing

Byron Wien’s 20 Rules of Investing & Life

Richard Rhodes’ 12 Trading Rules

John Murphy’s Ten Laws of Technical Trading

Six Rules of Michael Steinhardt

Warren Buffett Favorite Investing Quotes

Nassim Taleb’s 5 Rules of Volatility

Morgan Housel’s 9 Financial Rules

David Merkel: The Eight Rules of My Investing

Art Huprich’s Market Truisms and Axioms


Rosie’s Rules to Remember

Louis Ehrenkrantz’ 7 Golden Rules for Investing

In Defense of the “Old Always” (Montier)

Lessons from Merrill Lynch

Gerald Loeb’s Market Wisdom

Lessons Learned from 37 Years of Futures Trading

Richard Russell’s The Power of Compounding

Doug Kass: 10 Laws of Stock Market Bubbles

The golden rules of investing (India)

25 Common Sense Money Tips

Dan Bunting’s Laws of Investing

Cassandra’s (Not so) Golden Rules About Investing (& Not Investing)

These are more general rules, not necessarily about investing:

50 Cognitive Distortions

Todd Harrison’s 12 Cognitive Biases That Endanger Investors

Lefsetz’s Business Rules

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

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Category: Investing, Rules, Trading

Game Theory for Bulls & Bears

“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

Category: Cycles, Investing, Psychology, Rules, Trading

Lefsetz’s Business Rules

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

Category: Finance, Rules

Beware Consensus: When to Ignore the Investment Experts

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

Category: Investing, Really, really bad calls, Rules