When is cash King?
Following on from last week’s blog, which was entitled “Cash is sometimes King”, emphasis added, we will explore deploying an equities-only long term buy and hold strategy compared to cash-and-equities for the same strategy, because oftentimes cash is not king. The last 12 years have undoubtedly seen secular bear market conditions, which I have discussed […]
Cash is sometimes King
Welcome to a new year of the Gary Stone Journal. 2012 has come and gone and we can now look forward in the hope that 2013 will be a year of fruitful investment. To begin afresh, I thought that I would share with you my thoughts on an investment principle that is hardly the most […]
The Trading Manifesto – Brand new Special Report
My brand new and FREE Special Report is hot off the press. It’s called “The Trading Manifesto”. Why the name, “The Trading Manifesto”? Because the contents of this report are a written declaration of my thoughts, passions and beliefs on how every self directed investor should approach the markets. When I thought about what to […]
Unholy Grails by Nick Radge
I recently read Nick Radge’s book “Unholy Grails”. I highly recommend that every investor read this book. I repeat these quotes here because I am in total agreement with the concepts and principles discussed in Nick’s book. I also do so in an effort to add further evidence to assist readers of this blog to […]
Open Letter
The following Open Letter was sent to me by Mike Cullen as a comment to last week’s blog. It contains an interesting way of viewing trading, which I obviously agree with. I felt it deserved it’s own limelight as a posting all on its own. The context is Mike visiting a friend, Bill, who has been […]
K.I.S.S Trading Principle
“Everything should be made as simple as possible, but not simpler.” Albert Einstein. If you haven’t heard of it the acronym K.I.S.S. stands for Keep It Simple Stupid. This acronym is as applicable to the field of trading the markets as it is to any. The Keep It Simple Principle works best when activities are […]
Affirmations and Anchoring
Have you ever wondered what sets successful traders apart from ordinary market participants? It comes down to self belief and the ability to execute ones edge according to a trading plan. Once you have a strategy or system that has a demonstrated edge, the next step is to cultivate your beliefs so that you can […]
What is an edge?
So what is a researched EDGE and why is it important to have one when trading and investing? An edge is a researched set of entry and exit criteria that deliver profit trades that are sufficiently large enough to cover costs and loss trades over a large number of trading events. The biggest strength of […]
The views of a 45 year veteran
Charley Ellis, a 45 year veteran of investment in the markets, has been quoted as saying “the sad lesson for retail investors is that institutional investors underperform the market and that includes those professionals running managed funds.” In his book, “Winning the Loser’s Game”, Charley Ellis explains that managed funds, on average, will underperform the […]
Beating trading mistakes
Making mistakes is one of the biggest problems that private investors need to overcome. Active investors will make more mistakes than passive investors, especially when they start out, purely due to the fact that they make many more decisions. The aim should be to minimise mistakes rather than trying to hit big winners. Over time, […]