Friday, May 06, 2005

More Advice

I decided to continue with some postings from the New Market Wizards. In a future post I might state some of the track records of these guys: incredible!

Some quotes...

Stanley Druckenmillers: The way to build long-term returns is through preservation of capital and home runs. Soros has taught me that when you have tremendous conviction on a trade, you have to go for the jugular. It takes courage to be a pig. It takes courage to ride a profit with huge leverage. As far as Soros is concerned, when you're right on something, you can't own enough.

Richard Driehaus: Charts are a very unemotional way to view a stock's behavior and potential.
Q: What are the major misconceptions people have about the stock market?
They tend to confuse short-term volatility with long-term risk. The longer the time period, the lower the risk of holding equities. People focus too much on the short term- week to week and month to month price changes- and don't pay enough attention to the long-term potential. They look at all movement as negative, whereas I look at movement as a constructive element.
One market paradigm that I take exception to is: Buy low and sell high. I believe that far more money is made buying high and selling at even higher prices.

Victor Sperandeo: To be a successful trader (and investor), you have to be able to admit mistakes. The person who can easily admit to being wrong is the one who walks away a winner.

Tom Basso: I realized that every time I had a loss, I needed to learn something from the experience and view the loss as tuition at the College of Trading. As long as you learn something from a loss, it's not really a loss.

After reviewing more of the book I think I might post some of the track records- some are really amazing.

Also, I've added two related sites. One is called Flipping 70 and the other is the blog to this site.
Check out the sites for some good advice and articles.

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