Only Fools and Egotists Looks for Tops and Bottoms. Scale in and out.
It is better to own a Great Company for a Good Price than a Good Company for a Great price.
If you Can't explain the Company to your grandmother you Shouldn't own the Stock.
Simple Economics Don't Work. Usually, Supply Increases at Lower Price and Demand Increases. Explanation = Momentum Investors.
Stop being a Contrarian on Everything. Stay with the crowd and don't fight the tape. Be a Contrarian only at extremes. The market can stay irrational longer than you can stay solvent.
Worry about Loses not Profits. Most Investors are taken out of the game when profits are cut off at X% but losses are kept until 5X%. You will be wrong more often than right but it is about how much you make or lose when you're right or wrong.
Don't Let Your Trades Become Investments. You bought it for a reason, when that reason doesn't work, Sell the stock.
I am a Junior at the Kelley School of Business at Indiana University-Bloomington majoring in both Finance and Accounting.
I began trading my own portfolio during my Junior year in high school but have been fascinated with the market since at least the 5th grade, where I was nicknamed Stock Boy. I'm trying to earn the title Stock Man (no one wants to sound like a sidekick forever).
Long story short (I hope someone got that pun), I can't turn my brain off from thinking who makes money off of X and how that will affect stocks Y and Z. In the end, I want to open up my own hedge fund in the next decade.
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