In 2005, 450 sheep jumped off a cliff.
Then, another 1,500 followed for no apparent reason to sudden death. Sadly, this same scenario plays out just like this all the time on the Street. We just want to follow every one else, never questioning the rationale of the trade.Read More
Traders are often told to ignore the art of technical analysis.
“Technical analysis is fundamentally flawed,” says Forbes.
“I realized technical analysis didn’t work when I turned the charts upside down and didn’t get a different answer,” noted Warren Buffett.
Sir Isaac Newton was one of the brightest minds in history.
He’s well known for his discovery of the laws of gravity and motion, and for having developed calculus, optics, a reflecting telescope, a great deal of other contributions in the field of mathematics.
Unfortunately, he wasn’t such a bright investor.Read More
A lot of traders think of themselves as contrarians.
Unfortunately, when it comes time to pull the trigger on a contrarian bet, they freeze. They can’t do it. Fear rules the roost.Read More
We don’t always know to react.
Others of us only react when others react.
It really depends on what we’re told. For example, when the UK voted to exit the European Union, markets plunged as news spread. Many of us reacted with fear of the unknown.
Months later, the world was hit with a cyber security scare and there was no reaction.Read More
Try to see the positive in the negative.
It may sound like a popular proverb. But it’s how contrarians make their money.
Look at China in early 2017, for example. At the time, the world gave up on it, as the economy lost momentum. Short interest began to pile up. The bears were filing out.
No one in his right mind would touch the market.Read More