The Stock Market,
…influenced by the world’s economics …..
. . .influenced by humanity’s emotions …..
…with cycles (economics) and patterns (emotions) leading the forefront.
Those aware may Win …
They have mastered the science (trends) of commerce (fundamental analysis) and spatial patterns (technical analysis), & the Art of Emotions (the feel of timing)…
There are a number of factors that have an influence on stock prices and perhaps there are 15 that do actually have significant influence. I personally have found more than that. The real question to ask though is which of those X Number of factors have the largest influence right now!
If the market could be explained by a fixed set of rules, we’d all be filthy rich but fortunately it’s much harder and more fun than that which means not everybody can do it. The difficult thing about the market`s is that they are constantly changing or undergoing “regime” changes as it’s called.
Which means that any number of those factors that work right now, may not work at any point in the near future. When that happens you have to figure out which ones might now work and which ones no longer work anymore. The market’s short-term memory will eventually revisit factors that don’t work anymore and suddenly those factors now become important to it and they drive price for the time being until this regime change occurs again. -Zander
The danger is what you have to identify. Always be cognizant of it. The profits will take care of themselves, you take care of the losses. The most important thing in making money is not letting losses get out of hand. The most important thing in making money, has nothing to do with your profitable trades, it has everything to do with your losing trades. -Mark Cook
I don’t trade: gold, silver, oil, USD, foreign markets…. why? because I’ve seen even the best traders in all of these fields lose such big amounts of money…there’s too much competition so i won’t have an advantage or edge…it’s just not worth it..you can’t get rich trading against the heavy competition….. i’m an expert in penny stocks…i stay in my lane…my edge is in experience… people say why invest in penny stocks: “only the poorest and dumbest people in the world trade penny stocks”, but no one sees that there is so much predictability in penny stocks…. -Tim Sykes
The people who are really good at this, they love what they do. They love tackling intellectual problems. They’re not here for the money primarily. The successful investors love what they do. It happens to be super-lucrative. They love the game, the intellectual challenge. -Whitney Tilson
‘The whole money-management game is a difficult game. It has not only to do with how well you perform, but what kinds of results investors are looking for in their portfolios. Absolute performance can be misleading. I can say to you, “we were up 600 per cent” over five years in our most aggressive program, and you might say, “wow 600 per cent”. But that does not necessarily mean that much in and of itself, without knowing how well other currency-only managers performed and how much risk was being taken. For example, say a guy is managing $200 million, and $120 million of it is a fund that he runs with a very specific mandate. If he made 600 per cent over four years in that particular fund, he may have people pulling money out from that particular fund, because that was not the kind of variance they were expecting. The dynamics of the game are complex and often counter-intuitive.
The motivation of the investors is very different. Investors choose a style of management they are comfortable with. Ultimately, the preferences of a trading manager’s investors can influence the trader’s trading style.
So, before taking on new funds, ask yourself the following questions:
- What does the lender say he or she expects?
- What does he or she really expect?
- Have I traded successfully in the past in the manner required by the lender’s expectations?
- Can I deliver what the lender really expects?
- What are the consequences for me if I fail to deliver?
- How much control does the lender want?
- How frequently is the lender going to inquire about the performance?
- What type of personality has the lender? Is he or she likely to pester and aggravate?
- Can some ground rules be set?
Traders would rather lose money, than admit they are wrong. I became a winning trader when I was able to say,“To hell with my ego, making money is more important!” – Marty Schwartz
Best piece of advice i’ve come across: trade the ticker, not the company. I want my trades to be based off of what the chart is telling me, what the price action is showing me… -Tim Grittani
There is an aspect in the stock market that clearly relates to gambling.. one can tidy it up and call it speculation, projections..but in the end there remains always that element of chance, and excitement. And risk. -Michael Steinhardt
Stock Picking Won’t Make You a Billionaire. The stock market is good for a lot of things, and investing has a role to play in nearly everyone’s financial future, but it’s not a vehicle for making billionaires. Look down the Forbes list of the 400 wealthiest people, and you’ll see that none of them made their fortune by making stock picks alone. None of them were employees their entire careers. All of them are either entrepreneurs or the financiers of entrepreneurs. Most own businesses or are partners in multi-billion-dollar ventures.