Archive for the ‘Articles’ Category
There’s a lot of conspiracy theories out there about how the government is manipulating the stock market upwards (I’m looking at you Zero Hedge) by buying stock futures, etc. However a light bulb went off in my head after I read this Time magazine interview with Pimco’s Bill Gross on how simple the explanation is.
But [...]
Invest only in things you know something about. The mistake most people make is that they listen to hot tips, or act on something they read in magazines. Most people know a lot about something, so they should just stick to what they know and buy an investment in that area. That is how you [...]
A nice trading setup isn’t going to make you a better investor. However there is nothing more frustrating than missing an opportunity because your system crashed or you didn’t get the information you needed fast enough. I spent years and countless hours improving and iterating my setup. I’m very happy with it now. If this [...]
Electronic Arts (EA) is probably the company dearest to my heart growing up. I had many pleasant childhood memories playing games like One-on-One and Seven Cities of Gold on the Commodore 64 and Populous on the Amiga. They simply made great innovative games then. Somehow however the company lost its way over the years. [...]
There are a lot of corollaries between sports and investing. We all know that winning begets winning. When things are going well, the baseball looks like a basketball. You trade better and react better. On the other hand it works the other way, where losing begets losing. Where it sometimes seems the emotional death [...]
I find that Annie Duke’s tips on poker are directly applicable to trading.
Skills needed to be a good poker player (trader)
-grasp of math, probability, and game theory
-have to have “a lot of heart.” The ability to understand not only what the right play is, but to follow through with it (when you have a good [...]
Doug Kass is widely regarded as the guy that called the exact bottom in March by Barrons, New York Times, and CNBC anchors. Here are some tweets from his Twitter Feed. I will let them speak for themselves:
SP500 August 26th 12:17PM: 1027
SP500 August 10th: 1007
SP500 August 5th: 1003
SP500 July 28th: 980
SP500 July 22nd: 954
SP500 [...]
I’ve been reading Sun Tzu on the Art on War and found that many of his insights are applicable to trading and investing.
—
“Now the general who wins a battle makes many calculations in his temple ere the battle is fought. The general who loses a battle makes but few calculations beforehand. Thus do many calculations [...]
-Looks for situations where mis-pricing is large and risk is small
-He wants to understand why it is cheap and misunderstood
-Buy it cheap and don’t worry about price targets
-If he decides he is wrong on something in terms of why he bought it, he exits. Period
-Never invent reasons to hold a position if original reasons are [...]
Warren Buffett didn’t really hit his stride until he met his investment partner Charlie Munger. He is famous for converting the best investor in history from last puff cigar butt value investing to buying great franchise businesses for the long-term. Here are some general investment tips from Charlie:
-Bet very seldom
-You have to figure out where [...]