A Few Comments About Corrections
1) My number one trading rule is: PROTECT YOUR CAPITAL. Always think defense first. If you don't protect your money, you'll have nothing to trade with when a new rally begins. 2) Just as important is PROTECTING CONFIDENCE. Too many traders get killed and chopped to death during corrections. Unfortunately, when the new uptrend begins, they have little confidence and can't "pull the trigger." In other words, they hesitate, take smaller-than-normal positions, or even worse...they pass on [...]
Give Yourself A Chance
Whenever I attend investment conferences or speak to a group of traders, there are always a few people looking for the "Holy Grail." In other words, they are searching for some magical formula or a crystal ball to tell them when to get in and out of the market. I have news for you: IT DOESN'T EXIST! After trading for 16 years, the only "magical formula" I found is: hard work, gain experience, learn from mistakes, and [...]
Married or not…you should read this
A friend emailed me this story recently. I would happily give credit to the source, but I have no idea where it came from. I hope you find some meaning in it as I did when I read it... When I got home that night as my wife served dinner, I held her hand and said, I’ve got something to tell you. She sat down and ate quietly. Again I observed the hurt in her [...]
5 Lessons I Learned While Watching Oprah’s Lifeclass with Tony Robbins
I am a huge fan of Oprah Winfrey and Tony Robbins. So, when the two of them decided to combine forces for a 2-hour Lifeclass special last week, it was a no-brainer to watch and absorb their wisdom. There are hundreds of lessons they have taught me over the years, but here are a few that I took away from their recent collaboration. 1) Everybody has a fear that "we are not enough." For example, we [...]
The American Dream
"In 1923, seven men who had made it to the top of the financial success pyramid met together at the Edgewater Hotel in Chicago. Collectively, they controlled more wealth than the entire United States Treasury, and for years the media had held them up as examples of success. Who were they? Charles M. Schwab, president of the world's largest steel company; Arthur Cutten, the greatest wheat speculator of his day; Richard Whitney, president of the [...]
So You Want To Be A Trader?
It's really easy, right? Open an online brokerage account, send some money, and fire away. You can start your application now and be on margin within the hour. Sounds like a party, huh? Here are some things to consider: 1) 95% of individual traders lose money over ANY 10-year period. Why? Mainly because most investors buy poor quality stocks, but I could write a book on the hundreds of other reasons why I think this [...]