Investing

Stock price is mainly driven by the market in the short term

(Excerpt from Stock Market Wizards by Jack Schwager) Jack Schwager: Did your economics education at Wharton help at all in your career as a stock trader? Steven Cohen: Not much. A few things they taught you were...

August 11, 2022| Investing Read More

Buy as much as you can when the market crashes 30-50%

(Excerpt from Just Keep Buying by Nick Maggiulli) The next chart illustrates this. It shows the distribution of your annualized returns if you were to buy during any month when U.S. stocks were down by 30% (or more)...

May 10, 2022| Investing Read More

Keep losses small to tolerate poor accuracy

(Excerpt from Think & Trade Like a Champion by Mark Minervini) Most people are surprised when I tell them I would rather be able to maintain profitability at a 25 percent batting average than a 75 percent batting...

February 13, 2022| Inversion, Investing Read More

We all have an Emotional Stop-Loss

(Excerpt from Think & Trade Like a Champion by Mark Minervini) Everyone has an “emotional stop-loss” whether they like it or not. The point at which you can’t take it anymore is your emotional stop. For most...

February 13, 2022| Investing Read More

Two types of traders inside us

(Excerpt from Think & Trade Like a Champion by Mark Minervini) There are two types of traders inside you and me and everyone. One I call the builder— disciplined and process-driven. The builder is focused on...

February 13, 2022| Investing Read More

Mean reversion is the most ironclad rule in financial markets

(Excerpt from What Works In Wall Street by James P. O’Shaungnessy) The most ironclad rule I have been able to find studying masses of data on the stock market, both in the United States and developed foreign markets,...

September 3, 2021| Investing, Mean Reversion Read More

Books that define each decade of investing

(Excerpt from The Books That Help Explain Every Market Cycle of the Past 80 Years by Ben Carlson) 1940s: Where Are the Customers’ Yachts? by Fred Schwed Schwed did a wonderful job exposing Wall Street and its...

September 2, 2021| Investing Read More

Shannon’s Demon – Rebalance regularly if your investments are volatile

(Excerpt from Fortune’s Formula by William Poundstone) Imagine youstart with $1,000, $500 in stock and $500 in cash. Suppose the stock halves in price the first day. (It’s a really volatile stock.) This...

August 12, 2021| Investing Read More

Volatility affects compounding return

(Excerpt from The Iron Law of Volatility Drag by Taylor Pearson) You have two return streams (a return stream could be a stock, bond, particular trading strategy, etc.) You know that both will average an annual return...

August 12, 2021| Investing Read More

Beating the market may not be necessary to reach your financial goals

(Excerpt from How I Invest My Money by Joshua Brown and Brian Portnoy, chapter by Ashby Daniels) I believe the quest to squeak out a few extra basis points of return is a waste of time for the typical Main Street...

May 20, 2021| Investing Read More

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