Alan Farley, my colleague over at RealMoney.com, put together a list of "25 Pearls of Wisdom for Traders."
Here are my favorites:
· The best trades come when the crowd leans the wrong way. In other words, the majority piles in one way but profits come from trading it the other way.
· Market direction is only as strong as the leadership that guides it. Stocks play follow-the-leader even when the charts tell a different tale.
· Follow the professionals in quiet times and the public in wild times.
· Don’t trust others’ opinions. It’s your money at stake, not theirs.
· Good timing on bad stocks makes more money over time than bad timing on good stocks.
Our styles are very different — I’m much less of a swing trader than him — but Alan’s got a good eye for pithy wisdom.
25 Pearls of Wisdom for Traders
By Alan Farley
RealMoney.com , 11/18/2004 12:02 PM EST
“I guess we’re all behaviorists now” -Richard Thaler One of the most widely believed theories on Wall Street is the Efficient Market Hypothesis (EMH). Adherents of this charmingly naive thesis believe that markets are an incredibly effective distributor of information. Because of this, say EMH theorists, it is impossible, therefore, to beat the market,…Read More
Microsoft Conduct Is Challenged Again
As it pushes to settle other antitrust suits, Microsoft Corp. faces new, potentially damaging allegations about its business conduct in a patent-theft and monopolization case pending in a federal court in Baltimore.
In a court filing unsealed late Monday, a small Silicon Valley software company called Burst.com Inc. alleges that Microsoft routinely destroyed much of its internal e-mail despite the many federal investigations and private suits it has faced in recent years, when it was often under court orders to preserve such communications.
Burst.com, whose early investors included the Irish rock band U2, filed its suit two years ago. It charges that Microsoft used Burst’s digital-media technology in Windows, solving a technical problem that was slowing the acceptance of Internet video. Burst also claims that Microsoft tried to patent the technology after a technical briefing from Burst, and altered Windows so that Burst’s product wouldn’t work. Microsoft denies the charges.