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Jack Schwager On Why You're Investing Wrong
6 days ago by Fallible @ Fallible YouTube Channel

In this video Jack Schwager schools us on the importance of focusing on the RIGHT thing in markets — risk management. Too many amatuer investors are focused on the wrong thing when they’re trading. They’re obsessed with entries and finding the next hot stock. That’s part of the reason why there’s so many investing newsletters and youtube channels spitting out so many stock picks all the time. That’s what people want. But it’s not what they need… The best investors have win rates as low as 30%. So if that’s the case, does the specific investment you’re making matter as much as the need for proper risk management? The home runs are so rare, most of the time you’ll just be defending, trying not to lose. That’s why the best investors are so focused on their downside and risk management. Professionals understand that risk management and cutting loses are way more important than any other part of the investing process. They know they’re going to be wrong a lot, so they need to make ...

Top Ten Edges a Trader Can Have
10 days ago by Steve Burns @ New Trader U

We often hear of trading with an edge, but how do we know for sure we have an edge in our trading? How do we know that the odds are in our favor and that the more we trade, the more our accounts will grow?  An edge is a definable advantage over your competition. If I […]

Why I Am Not Worrying About Warren Buffett’s Record Stash of Cash
9 days ago by Dr. Duru @ Dr. Duru

A recent Business Insider (BI) heading warned boldly: “Why Warren Buffett’s record-breaking cash stockpile should have investors very worried.” The BI’s evidence comes in the form of a record stash of over $130B of idling cash combined with major indices, like the S&P 500 (SPY), at or near all-time highs. Putting the two observations together, […]

SPY

A trade that few retail traders know about but that most pros profit on
11 days ago by smbcapital @ SMB Capital

The trade we will share in this video from Mike Bellafiore, Co-Founder of SMB Capital, should help improve your trading. It also possesses the benefits of: Offering easy trades Clean technical analysis driven trades Offer excellent risk/reward Can make your month even in a slow month  The post A trade that few retail traders know about but that most pros profit on appeared first on SMB Training Blog.

Trade Like a Heavyweight Champion
12 days ago by Steve Burns @ New Trader U

This is a Guest Post by Akil Stokes There’s an old saying in the trading industry that goes “90% of traders will lose 90% of their money within the first 90 days of trading.” Whether these numbers are accurate is debatable, but something that we can all agree on is that the failure rate of prospective […]

This is what a *very* promising developing trader looks like
12 days ago by Bella @ SMB Capital

I am going to share what a *very* promising developing traders looks like.  I will do so by sharing his Daily Report Card.  Notice how he judges his trading, thinks about his trading, is working on the right things, and is intensive in his efforts.  This is a trader to copy if you are a new and developing trader. His ... Read MoreThe post This is what a *very* promising developing trader looks like appeared first on SMB Training Blog.

Bagholders
12 days ago by Howard Lindzon @ Howard Lindzon

The easiest way to avoid bagholder stocks (and become a bagholder yourself) is to never own stocks on the 52 week low list.

Buying Your Way Back to Riches
13 days ago by Matt Levine @ Bloomberg View

Also disputed CEOs and gold miners.

Why Economists Are WRONG About The Stock Market | Robert Shiller
13 days ago by Fallible @ Fallible YouTube Channel

Robert Shiller is not a fan of classical economics. And neither am I. In this video you’ll learn why! The problem with economics is when it starts to get over complicated with increasingly technical models trying to predict human behavior. The major flaw in these models is the assumption that people are rational. We all know that’s not true! So these models, as complicated and smart sounding as they are, tend to break down because of this assumption. Because people aren’t rational, and we’re all different, that means we all interpret information differently. That’s why I can look at an earnings report and think it looks great… but the company’s stock price drops anyway. What I thought about the report did not match with what the market thought. There’s a difference in how the information is being interpreted. This is the same reason all the financial media can be crying about the market nearing collapse, but even so it keeps rocketing higher. And that’s what makes a market right...

What is a Trader?
14 days ago by Steve Burns @ New Trader U

The following is an excerpt I wrote for Bob Lang’s new book “Know Your Options: How to Build Wealth Using Proven Options Trading Strategies and Technical Analysis.” What is a trader? Traders are often misunderstood. While investors are more mainstream, traders are viewed as risk takers or as having ulterior motives. There are some significant […]

Fintech Week – It Is Always About The Money
14 days ago by Howard Lindzon @ Howard Lindzon

I love money.I think that is pretty normal. Scott Galloway says it best here in ‘Yay Capitalism‘:I think a lot about money. I realize how awful that sounds. When I didn’t have much of it, I didn’t track it. And even now, when I know my portfolio has been beaten up, I don’t check my brokerage accounts for a few days, as I don’t want to get bummed out and know that (most of the time) they’ll recover.Continue reading Fintech Week – It Is Always About The Money at Howard Lindzon.

Trading With Energy
15 days ago by Brett Steenbarger, Ph.D. @ TraderFeed

One thing I've noticed among traders is that success breeds optimism and energy and optimism and energy breed success.  It's not difficult to walk onto a trading floor and see who is active, interactive, and inquisitive and who is glumly staring at screens and pacing the floor.</s...

The Daily Report Card with a 7 Figure Trader
15 days ago by smbcapital @ SMB Capital

In this video Mike Bellafiore introduces you to a 7-figure trader who works for a private fund who has adopted The Daily Report Card in his trading. Gain a better understanding of why you should take time each day to evaluate your trading. *no relevant positionsThe post The Daily Report Card with a 7 Figure Trader appeared first on SMB Training Blog.

Fintech Week – Of Course The Stock Market is Shrinking
15 days ago by Howard Lindzon @ Howard Lindzon

The New York Times article titled ‘The Stock Market Is Shrinking. That’s a Problem for Everyone‘, is getting a lot of play in the financial blogosphere this weekend. This fact is the one most have globbed onto:In the 1990s, there were 8,000 public companies. Now there are fewer than 3,800. And the top 200 generate all of the aggregate profit. I call bullshit on the ‘everyone’ part of the article.Continue reading Fintech Week – Of Course The Stock Market is Shrinking at Howard Lindzon.

Cramer Says There's A 'Stock Shortage'
12 days ago by Jayson Derrick @ Benzinga

A quiet trend continues to emerge in stocks that isn't receiving enough attention, according to CNBC's Jim Cramer: a stock shortage at a time when the average American is saving more money and investing in risk-averse index funds.read more

Are You Gambling Or Investing? | Facebook Stock Drop
20 days ago by Fallible @ Fallible YouTube Channel

Are you investing or gambling? That’s the question you need to ask yourself. In this video I’ll use the example from the recent drop in Facebook (FB) to show the difference. On reddit a user posted about his pre-earnings Facebook play. He took his entire account, $57,000 worth, and bought weekly puts on FB. After the drop, he was able to sell those puts for $451,000 — a gain of 1500%. Pretty amazing. My question is whether or not this person had a real strategy behind that play. Is this repeatable? Is there any risk control? Based on the information in the reddit, it doesn’t look like it. He bet his entire account on a zero or one type play where he would either win huge or completely blow out. And he did it based on and earnings report which no one knows what will happen. It doesn’t seem like a legitimate strategy to me. It sounds more like gambling. Now there’s nothing wrong with gambling in the market. But it’s important to not get that confused with actual investing. Peo...

The Top 5 Stocks Are Big. And They're Outperforming. This Is Normal
25 days ago by Urban Carmel @ Fat Pitch

Summary:  The 5 largest stocks comprise about 16% of the S&P 500. That's normal. In fact, the importance of the top 5 stocks was far greater in the 1970s than anytime in the past 5 years.It's true that today's top 5 stocks - known by the acronym FAAMG - have largely outperformed most other stocks. That's how they became today's top 5. Over time, stock indices have typically been driven higher by a small number of stocks. And over time, those leaders have continually changed. This is the story of the stock market. Only one of today's top 5 was also in the top 5 in 2013. At the height of the tech bubble in 2000, the top 5 were companies like GE, Exxon, Pfizer, Citigroup and Cisco.Right now, most stocks are doing fine: an index in which non-FAAMG stocks have a 99% weighting closed at the second highest level in its history today. It's on pace for a 10% gain in 2018.* * *The 5 biggest stocks in ...

Trading: Where the Magic Happens
24 days ago by Steve Burns @ New Trader U

The magic of successful trading is not in someone giving you a trade. It is not in forecasting, predicting, a hot stock tip, or any one big trade. Successful trading does not come from gurus predictions or financial. Trading is a profession whether part time or full time it is about you, your risk tolerance, […]

Stop losses for stock riches
23 days ago by Bella @ SMB Capital

There is one thing you have to get right at the start, developing stage, and apex of your trading career.  Some think getting this one thing right it is optional.  There is other work waiting for them.  Others fight its necessity to the frustration of those who run trading firms.  Those traders either get onboard or are transitioned out.  Still ... Read MoreThe post Stop losses for stock riches appeared first on SMB Training Blog.


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