some thoughts on Investing and Trading the Markets

[Biophilos]

I wrote these short pieces from my experience years ago concerning trading the markets. after not seeing them for years I believe still there is solid advance t...here for neophytes to the dangers waters of the " Markets".



Let the motto of the Watchdogs be the Delphic Oracle's saying:  "Pan Metro Ariston", meaning - in all things to have measure is best..........and a collorary......."Gnothe Se Afton"......have knowledge of yourself. One is the right hand and the other the left hand of a psychological atmosphere that must be present to guide your thoughts and the results of actions which are taken after them......this sort of goes along with one of Graham's Book, the Intelligent Investor proclaims.......

"The market is a pendulum that forever swings between unsustainable optimism, which makes stocks too expensive and unjustified pessimism, which makes them too cheap.  The intelligent investor is a realist, who sells to optimists and buys from pessimists."

the Middle Path between the Scylla and Charybdis of extremes which devour us and cause us to fall prey to passions which later we regret, especially when we have put our money to them, and then mourn the loss of it because of our own inabilities to restrain, discipline, or exercise patient, and confidence when the winds of mismanagment and stock vissisitudes blow upon us hardily......

Overtime I have come to some thoughts concerning investments:


Discipline

One More Day method

emotions

conservative approach

daring approach

options

equities

portfolio diversity

taking your account as a whole snapshot:

exiting losers and redistributing the funds to something more high on the confidence level

patience

quickness

focus

honesty about your actions

reviewing and pondering on your experiences
being open to the input of others experience... a sense of humility if successful, and positive endurance if conditions are going not so right:

juding long term and short term investment strategies

daytrading:
swing:
and " Hold"

taking breaks and just staying on the sidelines:

complete honesty , trust , and sincerity within an Investment Cluster:

managing a down cycle and loses......for example 20%-35%-50%

managing and upward trend in your favor.....

Greed versus good judgment

using intuition........

researching your investments:

handling the Media and their manipulations......

panic.....

waiting.......8 times out of ten.....you rush into a positive only to find that if you just " held your horses" and applied the bit to your " surge" .....you would have gotten a better seat in the theatre......

cleaning house every once and awhile:

dividing your investment into levels......according to confidence.....ex...options 30 of them divided 5-15-10 for example

price to sales , roe, roa, p/b, eps, etc........ratios

establishing your own criterion of valuation is very important.....

Volume/ % buys, and sales.......

before large dividends

After large dividends

before stock splits

after stock splits

you can't pick fruit from the same tree.....need to give it a chance to regenerate or come to an area where the investment becomes once again " fruitful"

Fishing Grounds......sounding the market for deals and opportunities

Trading is about Judgment when to get in and out.....about decision, about you making it or someone else you trust making it for you....regardless though the market moves all the time, and no prices stay the same.....its the value that you attach, on guessing, for the insiders know conditions about to be sprung that you do not...then there is the brokers manipulating prices....many headwinds to struggle against to reach a win....

sometimes its good to take your profits and run, other times to let them run....regardless it all boils down to your decision and the outcome resulting financially from them....nobody is perfect, we all make mistakes...the differences between success and failure regarding portfolio gain or loss is how many of them you make, and the management of your investment funds reflected in profit taking and exit strategies that do not hurt you in the end.

It seems to me,  that the brokers purposes pump stock up to gain from either a downturn, or to profit because of low positions that they or their clients are in.....you will see in the morning how they open stocks much higher than the previous day close and then deflate them,or do the opposite open them much lower and inflate them.....this of course does not apply to every one stock, there are earnings reports, mergers, splits etc.....

sometimes alot of buying fools you, because it is no legit, buying into growth and profit for a company, but short sellers preparing the ground for a deflationary period from which they expect nice returns.....

Look at the charts and you will see some simple patterns......that mostly stocks go up for longer periods of times with sharp downs...it seems that down markets do not last as long as up markets....there is the considering also that stocks must increase to compensate for Inflation......that there prices reflect this.....until
unfortunately there is a monetary meltdown......

WAIT: ONE MORE HOUR ON FALLING STOCK......AT LEAST CONSIDER IT...check news etc......before you plunge......

Instead of the single hook, or shot, the Shotgun methods.....taking a spread instead of one point.

Using the IVolitility calculator for options figure what the possible loss can be according to you projection of how far down a position can go worse case scenario.....this way at least you can manage the investment as to tolerance of loss .......

Check out the five-year statistics on return of earnings, return on assets, and price to earnings.  So that you can judge the value of a company over a longer period of time.

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