| Money Talk |
| Return to Board • Menu • Bottom | Page 1 of 3  |
| Message |
| 50 Unfortunate truths about investing Posted by Vols&Shaft83 Original posted on The Motley Fool by Morgan Housel  on 3/11 at 3:18 pmLINK A few favorites: quote: quote: quote: quote: Reply • Back to Top |
| Those are pretty good. Love the cnbc one. Reply • Back to Top |
| 27. When someone mentions charts, moving averages, head-and-shoulders patterns, or resistance levels, walk away. Got to call bull s*** on this one. Technicals are very valuable tools. Should they be the only tools used? No, but they are still very important. Let me add that the longer term a chart is, the better it is to make decisions off of. Trading from short term charts (1 min, 5 min, 10 min, hourly, and even daily) without using long term (weekly, monthly, and yearly) will cause lots of pain. This post was edited on 3/11 at 4:36 pm Reply • Back to Top |
quote: I do as well. They have some guys on that are very good...but they aren't on that often. Reply • Back to Top |
quote: agreed 100%. Dude has never clearly traded commodities successfully if he thinks those indicators are BS. not to mention 1-2-3 tops and bottoms. double supports and triple resistances also are indicators. Reply • Back to Top |
quote: Agree. Commodities are what I've learned on. The 50 rules does leave out the most important tool to succesful investing/trading: Risk Managment! Reply • Back to Top |
quote: yep and you need it in the futures markets for damn sure. trading individual stocks is boring to me. commodities is so much more exciting! Reply • Back to Top |
quote: Housel is certainly not a commodities trader. He's very much a Buffetologist, likes funds, and undervalued stocks. I tend to agree with you guys on this, although I wouldn't recommend the average Joe play in the commodities arena, which I think Morgan intended this article for. Reply • Back to Top |
quote: Lol, I'm sure you wouldn't encourage a casual investor to play with futures, I sure as frick wouldn't. I'd sooner recommend bitcoins  Reply • Back to Top |
quote: If you're doing it for the excitement your bankroll is in trouble. Reply • Back to Top |
quote: Agree. A guy I'm trying to help has the mental ability/phychological ability to be a good trader/investor, but he sometimes views it to much as a trip to the casino. This post was edited on 3/11 at 6:02 pm Reply • Back to Top |
quote: Technicals are a self fulfilling prophecy. They work for no other than the fact that people expect them to work. The basis for technical analysis is absurd IMO, but it's been around for so long that people who use it have poisoned/influenced their own data. Reply • Back to Top |
quote: But not unicorn farts Reply • Back to Top |
quote: But if they (technicals) work, then they work. It doesn't matter why. If other investors/traders swear by technical analysis, then it's a legitimate factor to take into account when making decisions to invest/trade in the capital markets. In essence our entire economy is based off future expectations. If you expect higher inflation in the future, you raise prices today, making that expected inflation a reality. If you were a fund manager back in the late 90s during the Dot-Com Bubble who had stayed out of the tech stocks knowing that they lacked value, you would have still likely had to close your fund because your investors would have closed their accounts to invest with fund managers who chose to put money into dot-com ventures. The gist of what I'm trying to say is that the markets are not rational. Pivot levels, head-and-shoulders, etc. shouldn't exist (but they do). Anomalies, such as the January Effect, 3COM/Palm spin-off, and earnings drift shouldn't occur (but they still do). Don't bash technicals just because you think they shouldn't exist. Reply • Back to Top |
| I read this a while back. I have it posted at work. I'm super lame. Reply • Back to Top |
| I read this a while back. I have it posted at work. I'm super lame. Reply • Back to Top |
quote: quote: You can say that again This post was edited on 3/11 at 8:05 pm Reply • Back to Top |
I just wanted to make sure my point came clearly across.  Reply • Back to Top |
The following are a great starting points for most people. quote: quote: quote: quote: Reply • Back to Top |
quote: no, of course not learn how to trade them first. But they are not the taboo so many make them out to be. Reply • Back to Top • Refresh |
| Return to Board | ||
  Page 1 of 3  | ||
on 3/11 at 4:31 pm to 
on 3/11 at 4:32 pm to 
on 3/11 at 4:38 pm to