Weekly Words of Wisdom

[DuaneG]

I thought it might be interesting to compile some pearls of wisdom that I have heard over the years. These have helped me keep the focus and frame of mind needed to survive in this business, hopefully they will provide someone else the same.


"The market can remain irrational longer than you can remain solvent" - John Maynard Keynes

[Gavishti]

Making money is more important than being right.

[soylent]

Re: Weekly Words of Wisdom

Originally posted by DuaneG
I thought it might be interesting to compile some pearls of wisdom that I have heard over the years. These have helped me keep the focus and frame of mind needed to survive in this business, hopefully they will provide someone else the same.


"The market can remain irrational longer than you can remain solvent" - John Maynard Keynes

Duane --

This is so true. It's especially hard for investors that invest on fundamentals or 'what they like'. Technicians have their stops in place to protect 'irrationality'. But, typical mom/pop investors don't know what they are getting into.

I remember when I first started 'trading' in July 2003 I saw INTC and said, "Oh, this stock is ludicrously expensive". I didn't SHORT it but I sure did look @ it and think it's crazy and won't keep going up. But, in that time INTC climbed from $20 to $35. Almost 100% higher than I thought it was @ the crazy $20 level. Now, in the last 2 months, it's come back to $26. I still think it's way overpriced. But, who's to argue?

On the opposite side, I look at a lot of companies. Like MSTR (Microstrategy). Here's a company that last January was @ $10 and had a split adjusted value of $3,000 @ one time. Yet, @ $10 it was selling at 1/10th it's revenue!

The hardest thing for me was realizing the market is 98% technical, 1% fundamental, and 1% 'holy schniekes' news events.

Since realizing this, I don't even try to figure out what the 3-4 letter ticker even stands for let alone what its earnings are.

-c

[FibbGann]

"Never bring a knife to a gun fight" Velez

[fabrizio]

LIFE IS ENTERTAINEMENT, SURVIVAL IS A GAME.

Douglas Robert Tompkins (Former Owner of ESPRIT )

[Nuno]

If the world didn't suck, we'd all fall off.

[MR]

more words of wisdom....

some more Words of Wisdom?

Click here for some good words.

"Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it." Warren Buffet

"Man made the money, money never made the man." —Unknown.

"If you want to know what a man is really like, make notice how he acts when he loses money." — Proverb

"If you want to make money, go where the money is." — Kennedy

There are two times in a man's life when he should not speculate: when he can't afford it, and when he can. Mark Twain

Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1. Warren Buffett

You can’t depend on your judgment when your imagination is out of focus. MarkTwain

Without fools the rest of us could not succeed. MarkTwain

Only those who dare to fail greatly can ever achieve greatly. Robert Francis Kennedy

Champions keep playing until they get it right. Billie Jean King

“The game taught me the game. And it didn’t spare the rod while teaching.” Jesse Livermore

“I don’t know whether I make myself plain, but I never lose my temper over the stock market. I never argue with the tape. Getting sore at the market doesn’t get you anywhere.” Jesse Livermore

The market is an expensive place to find out who you are. (not sure who said it?)

“They say you never grow poor taking profits. No, you don’t. But neither do you grow rich taking a four-point profit in a bull market.” Jesse Livermore

“When I think I have found the solution I must prove I am right. I know of only one way to prove it; and that is, with my own money.” Jesse Livermore

There is no such thing as easy money. (me?)

"We've lost very little on errors of commission. The errors of omission are the big ones." Warren Buffet

Never get over-confident. (me?)

"Facts are stubborn things." -Tobias Smollett

"In the middle of difficulty lies opportunity." Albert Einstein

- - -
Young Joe's started more of his ventures;
He gambled in shares and debentures
And lost all his cash
In a stock market crash;
Now he's trading in second-hand dentures.
(Peter Demon, UK?)

Some trader’s methods are quite bombastic.
Others trip the light fantastic.
To locate a system that’s not too drastic,
try the fourteen day stochastic. (Ted Nash?)

[DuaneG]

Here's my blurb for the week.

"Most traders take a good system and destroy it by trying to make it into a perfect system.".......Author Unknown

Have a good weekend everyone.

[DuaneG]

This is one of my all time favorites. Thought I would share.

"If you are a technical trader, everything boils down to one thing: If you can ascertain the two states of the market- trending or not trending- you're 80 percent of the way there. If you can get that right even just two thirds of the time, you'll be a successful trader."- Manuel Ochoa