A Pep Talk we all need now and then
Trading can be a very lonely game. As self investors we tend to internalise our feelings and emotions without sitting back and assessing where, we’re really at. Recently I was fortunate to be interviewed on JSE Direct – a South African radio program hosted by well respected South African media analyst Simon Brown. Simon’s interview […]
When things go against you – part 3
A better way to think about bear markets The beauty of long bear and sideways market periods is that they are almost always followed by long rising market periods. The majority of the time, the longer and stronger the bear market, the longer and stronger the bull market that follows. This is how consistently successful […]
When things go against you – part 2
Thinking about the markets from the market’s perspective can remove fear from the equation by creating a belief that down markets are a necessary part of market behaviour in the future and just as tradable as low market risk periods. If you think from the paradigm of your business, your job objectives or from your […]
When things go against you – handling drawdown
Research shows that the average down market lasts three to four months. However, it is not the short-lived down market periods that active investors should worry about, but the occasional longer and sustained down market periods, such as the one we are now experiencing. All ‘long’ strategies, whether they are Buy & Hold or more […]
Processes and outcomes
Once you have accepted achieving consistency as your major skills goal, what other skills goal can you set? Perhaps you could set a goal to become the ‘perfect trader’. What would this mean – no losing trades? Is this possible? I can assure you, it is not. Randomness will take care of this. A perfect […]
Discretionary or Mechanical?
Part 2 – Mechanical: The dictionary definition of mechanical reads: “like a machine, as if acting or doing without conscious thought.” Unlike the discretionary trader, a mechanical trader uses a set of unambiguous rules to guide his or her actions in the market. These rules determine: o when to buy and sell o what to […]
Discretionary or Mechanical?
Part 1 – Discretionary: Discretion is defined as: “freedom or authority to act according to one’s judgment”. Statistically most investors use discretionary decision making processes in the market rather than mechanical processes. Unfortunately, very few discretionary traders have longevity in the market and hence you could conclude that they don’t have an edge. A discretionary […]
Preparation
In all our endeavours in life, preparation before hand is vitally important. This applies to business, sport, trading and everything else that we do in both our personal and business lives. Those that take the necessary steps to learn and prepare themselves prior to an event generally have not only a much higher chance of […]
Matter of Confidence
Following on from last weeks blog on executing good trades, this week I will look at the issue of confidence from a trading perspective. The dictionary definition of confidence is ‘a feeling of reliance or certainty’. Here’s another positive way to define it:- Confidence is thinking about, and concentrating on what you want to happen. […]
Taking Responsibility for your Investments
One of the major lessons we can take from the 2008 bear market is the need to take responsibility for the management of our money, investments and general financial well-being. The issue with bull markets, and extended ones in particular, is that they breed complacency. Investors become complacent in their approach to the markets and […]