dang I never got around to making another video on this topic....I need to do a youtube
one. This is the most important part of trading.

.

Part1 risk management

Yes that means there will be more parts :)

Last edited on: 05-08-2009 08:04 am

my favorite quote of the speech--something that ive always had the opinion of but couldnt
articulate it as well

"the problem with valuing is we compare with the past instead of the possible"

Last edited on: 05-06-2009 01:00 am

watching the video

FANTASTIC video about the risk of the **mind**

http://www.ted.com/index.php/talks/dan_gilbert_researches_happiness.html

i think its a awesome example of how difficult it is to assign value to stocks, why i
always put the word "value" in air quotes. it also goes a long way to show what i think is
important if you want to value a company.

Last edited on: 05-06-2009 12:19 am

also, listening to others about what to trade. to my way of thinking one can only ask
another so much. i like how stockpickr now has people like dan fitzpatrick coming on
specific days to answer questions. i think it helps bringing in a professional.

but once again, in the end its gotta be what you think, what you see, what your capable
of. i think dan fitzpatrick is great. somehow we often have the same view on where a stock
is going, but i find myself **constantly** disagreeing with him about HOW to look at
charts.

i think its important that everyone finds their own way. its too risky trusting someone
elses eyes. might as well let them trade your account.

Good comment Ryan and how true...Everyone must develop their own style, as long as the
style works for them.

I try to assimilate what I learn on these threads and from other sources and apply to my
needs.

a big risk that i dont think too many people talk about is the risk of listening to
others. i mean this in multiple ways.

what kind of trading strategies do you have? where did they come from? had to be
someone...right? odds are we have "learned" from others how the market works.

P/E ratio under 10 is value
P/E ratio over 30 is too expensive

Bear Harami is...well, bearish!

Head and shoulders top is always bearish.

doesnt matter what it is, the odds favor that we learned truths about the market from
books, magazines, websites, people on stockpickr etc.

but all of those truths--in the work ive done, from what ive seen in markets--arent true.


i think its important that we do the whole "trust but verify" thing. accept someone might
have a nugget of truth about the market. but then go do our own work and see what really
happens in the markets. or also see if we can even apply their style. sometimes its just
not compatable.

thanks for the comments. perhaps i should clairify.

rapace -

im actually doing great in terms of making money. thats typically my problem. when im in a
hole, that makes me focus and push harder. its times like this where its so easy it feels
dumb...THATS where im at. im long things like AEO, BKE, KSS etc. that have ran straight up
through the roof. the only thing i can do to not sell it all is spend less time in from of
the computer.

the trip to Europe does sound nice. particularly since the $USD chart doesnt look as nice
these days.

Last edited on: 04-23-2009 01:09 am