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The Art and Science of Investing
According to the Trader Wizard....
There is no mystery to success in the markets. Investing, or what I correctly call trading, is simply a business of common sense, faith, courage, knowledge, patience and luck. …As complex as it might appear to you, the securities market is merely a case of "people acting like people" -- with all their fears, enthusiasms, prejudices, stupidity and wisdom. It is not, as I like to say, rocket science. It is simply a matter of trading prices. Trading is a journey and I intend to help you on your way. As we go down the road together, it is well to keep in mind the basic guidelines I outline because they will apply tomorrow just as much as today.
Trading is something anybody can succeed at if we remain a student of the market, which is to say we are always open-minded, always learning, always trying to get better. At the end of the day, if you follow my time proven guidelines, set goals, use common sense and exercise self-discipline, you will succeed. You will measure your success in terms of money but money, by itself, is never as important as peace of mind, which is a synonym for happiness. Regardless if you are conservative, aggressive, or speculative in personality/philosophy, the first and simplest rule is that if any decision causes you or your family to worry, do not make it. If you have already done so and you are worried today, then sell.
Wisdom for making money in the capital markets
To construct a proper portfolio program, each independent owner of capital must first understand that trading is like a journey. You start from a place and then head off along a certain path. If you know where you are starting from and where you are going, you’ll undoubtedly get there.... The place to start is with a realistic self-assessment of your own personality. Are you basically (a) conservative, (b) enterprising or (c) speculative?
Think hard on this because there is never a need for you to act out of character. To succeed in the market, you need to be yourself. If you try something else, your journey will only get side-tracked. After you have done this self-appraisal, your next decision is to choose what line of approach you will take to in the capital markets. The clear options are (a) fundamental (b) technical and (c) quantitative....
  
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About
the marketplace The market is the theatre of life where the play is all about time and money. If trading represents our journey and our decisions mirror the paths we take, then the market is the big show, the place all of us experience it.
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Anything you read from the Trader Wizard will echo the insightful words of Charles Dow. |
About
Financial Television Depending on the level of hype, financial television can be classified like books: fiction and non-fiction. Bloomberg TV (International) and BNN (Canada) are clearly in the non-fiction category. They are head-and-shoulders superior to their competitors. For short-term traders, Bloomberg TV is excellent. Not only is Bloomberg TV on local cable television, it is available to anybody in the world via the Internet.
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About
Personal Tax Avoidance All the economic powers of the world are high rate income tax jurisdictions. Without lots of your money they wouldn’t have as much power. read
more... The United States is the only major country in the world that taxes its citizens globally, wherever they reside, in or out of the USA. Unlike citizens or resident aliens of other nations, a US person can't escape by simply moving offshore. |
Trading bonds for capital gain In my view, sticking to the common myth that bonds should be bought and then stored in a safety deposit box is a foolish way to manage capital. Bonds are tradable instruments that must be managed like you would a stock. To most of you, a bond is a secure, mostly stagnant investment that provides fixed annual income and redeemed at maturity for the same amount of dollars used to purchase it when issued. Read
more about trading bonds. |
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The
gold futures market While it could be a good market for speculators, gold is usually a poor holding for conservative investors unless you are into writing puts or calls for additional income. The gold futures market is that much more dangerous. Gold futures contracts, however, give the gold speculator the biggest bang for the buck. More
about Gold futures. |
Fastest
moving To find the fastest moving groups, you must first find the fastest moving industries with common themes as to interest rates, commodity prices, or major economic factors. After you zero in on an industry group, next look at the sub-group stocks that Value Line or Standard & Poor’s rates highest considering fundamental, quantitative and technical factors. More
about the fast movers. |
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