Saturday $STUDY Session, December 3rd.
Great links shared on StockTwits over the past week that discuss process, mindset, & strategies for success in the Markets
“Investing is like farming. It doesn’t grow overnight. It will take time for value to be built, and time for people to recognize that the company is better than they thought it was. It won’t be a linear process, either, unless something unusually good happens. There are setbacks with almost every winning investment. Keep your eyes on the main drivers of growth in value, and whether management is using excess cash to the best ends, which will vary by company.”
“We get distracted by shiny objects and new strategies and spend time looking for some secret sauce, “working harder” on our investment portfolios, when 90% of the time that’s a waste of effort and the wrong thing to do. If instead we could focus on doing things better — sticking to a pre-defined process, minimizing obvious obstacles like transaction fees instead of bashing into them full speed, we’d get there faster.”
“There is a blind spot for the market, and that’s in extreme events. The market (meaning people) are pretty good at setting odds for most things. But once you start getting to extremes, they’re not so good.”
“Focus, consistency, and an almost transcendent ability to avoid going on tilt, he set himself apart from his competitors. All these characteristics, along with a forward-looking attitude, have brought him to the top of his profession.
Seidel’s example is a lesson not just for poker, but for life.” […and investors]
“We fear loss because our brain does not assign the same weight to a $100 loss as it does to $100 gain. The happiness at finding $100 on the street doesn’t equate to the frustration of opening your wallet and realizing you lost $100 you needed to pay for something. We don’t like to lose, and statistics show the majority of humans will gamble in order to avoid a loss.”
“Markets move based on known patterns of action, on elementary human emotions, on unchangeable human habits or laws, if you will, all rooted in the desire for gain and the fear of loss.”
A fantastic series of ongoing lessons gleaned from the life and quotes of Jesse Livermore, applied to today’s market realities:
“After spending several years struggling, searching for that “Holy-Grail” trading system and failing miserably, I had my “ah-ha” moment, a moment that consisted of two main realizations:
- I was looking at everything except the most important thing; pure price action.
- I was trading way too much, thinking way too much and generally just over-complicating the trading process. I needed to become a minimalist trader.”
Are you a new or aspiring trader looking to take on the world? If so, here’s some expert advice from some of the smartest people we know in social finance: