Wrong
Wrong – unless it is a catastrophic event such as WW3 breaking markets are not looking at today, but what might be possible scenarios in 12 months. And clearly they are not happy with what they see.
When you remember you are simply a passenger and you leave things alone.
Hendrik Bessembinder’s latest paper asks the question – which US stock has generated the highest long-term returns?[i] The answer is Altria Group (formerly known as Philip Morris). Over 98 years the tobacco company produced a cumulative return of 265,000,000.00 percent! Based on this it would be easy to write about how lucrative it can be…
Here is a quick quiz. Why do the majority of traders trade? If you answered to make a buck then you are unfortunately wrong. The overwhelming evidence is that the majority of traders trade for entertainment value. If allowed to make a lesser gain but trade more versus trading less but making more traders generally…
I will pop this here as a reminder that noise often does not indicate what is moving in markets. And so we are back to the issue of thinking.
This image appeared on my LinkedIn feed last week and you may ask what it has to do with trading. The answer is quite simple—a lot because the image itself and the responses it generated demonstrate why people fail at investing. All the responses I saw agreed—they were little more than echoes of the original…
Next year the US plans to move their markets to 23 hour a day trading. Here are a series of charts illustrating why this move might completely stuff the ASX.
Eckhart Tolle’s philosophy on embracing the present moment confers a powerful lens through which to analyse both personal well-being and trading strategies. This perspective suggests that resistance to reality generates psychological distress while embracing the present fosters clarity and more constructive outcomes. Within the trading realm, mindfulness—a concept often misconstrued as abstract or mystical—represents a…
Trend-following traders prioritise aligning their strategies with the market’s direction rather than their personal biases or egos. The market operates independently of any individual’s beliefs or predictions and rewards those who adapt to its movements. By following the prevailing trend, traders capitalise on the momentum, allowing them to ride profitable waves rather than getting caught…
Adaptation Adaptation is the delicate equilibrium that distinguishes despair from triumph in the realm of trading. In this domain, where uncertainty reigns supreme, achievement demands more than analytical prowess; it necessitates an acknowledgment of the market’s inherent unpredictability. Every trade presents a dual possibility: it may propel a trader forward, redefining their trajectory, or it…
A few weeks ago I lamented the desire of traders to make their lives much harder than than they should be. To illustrate this I posted the chart below – It highlights the power of drawing straight lines to define zones of congestion and then going long or short based on the direction of the…
All forms of trading require decision-making. Sometimes, this decision-making is logical and generates a natural, logical endpoint that anyone can follow. At other times, it is narrative-based and relies upon stories and feelings—neither of which works.
One of the most remarkable things about markets is their absolute impartiality. They don’t care about your background, education, age, or social status. The thing the markets penalize—consistently and without fail—is laziness and a lack of discipline. If you’ve been lured by promises of “get-rich-quick” systems that claim to require just 15 minutes of effort…
The Market as a Mirror Investing and trading have long been subjects of intrigue, with countless books and theories attempting to decode the seemingly chaotic nature of markets. One such book, Blood in the Streets, authored by Nathan Rothschild has gained a degree of fame for its insights. The title reflects a common metaphor used…
Fear: The Powerful Adversary of Every Trader Fear is one of the most formidable challenges that traders face. It is powerful and far from harmless. As an emotional force, fear can take hold and grow, gaining enough strength to overwhelm even the most seasoned traders. If left unchecked, fear can dominate decision-making, paralyse the…
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