Taking Money off the Table
For the competent trader and investor, consideration should be given to the rate of return received on capital, regardless of the market outlook. For example, if $100,000 grows to $150,000 in six months and the market looks higher, but is obviously vulnerable to the unexpected, I think taki
A Word on Inflation and Market Psychology
In addition to many other contributing factors of inflation or deflation, a very great factor is the psychological. The fact that people think prices are going to advance or decline very much contributes to their movement, and the very momentum of the trend itself tends to perpetuate itself.–Gerald
You Need An Edge On The Crowd
To make money in the stock market youeither have to be ahead of the crowd or very sure they are going in the samedirection for some time to come.– GeraldM. Loeb, from The Battle for Investment Survival, (1996 John Wiley &Sons, New York), originally published in 1935.
Momentum Leads The Market
One useful fact to remember is thatthe most important indications are made in the early stages of a broad marketmove. Nine times out of ten the leaders of an advance arethe stocks that make new highs ahead of the averages.–Gerald M. Loeb, from The Battle for Investment Survival, (1996 JohnWiley &am
Focus on Price and Trend
There is a saying, A picture is worth a thousand words. One might paraphrase this by saying a profit is worth than endless alibis or explanations. . . prices and trends are really the best and simplest indicators you can find.–Gerald M. Loeb, from The Battle for Investment Survival, (1996 John
Some Things Never Change
As a practical matter, it will pay to look at the lists of new highs and new lows. . .Check on stocks that make new highs and on quiet stocks that begin to develop plus signs and higher volume. This can help you find new and profitable shares to buy.–Gerald M. Loeb, from The Battle for Investme
Learn To Accept Losses
Accepting losses is the most important single investment device to insure safety of capital.–Gerald M. Loeb, from The Battle for Investment Survival, (1996 John Wiley & Sons, New York), originally published in 1935.
Stock Valuation
Theorists may claim that stocks are too high or too low based on their individual and varying ideas of what people should pay for a given situation at a given time. But the real price of stocks is based on the majority appraisal of the moment.–Gerald M. Loeb, from The Battle for Investment Surv
Price Precedes News
I feel all relevant factors, important and otherwise, are registered in the markets behavior, and, in addition, the action of the market itself can be expected under most circumstances to stimulate buying or selling in a manner consistent enough to allow reasonably accurate forecasting of news in a
Maximizing Profits And Cutting Losses
The differencebetween the investor who year in and year out procures for himself a final netprofit, and the one who is usually in the red, is not entirely a question ofsuperior selection of stocks or superior timing. Rather, it is also a case ofknowing how to capitalize successes and curtail failure
Beware Of Wall Street Proverbs
The stock market is one place where down-to-earth realism prevails. Yet . . . it has its folklore and legendsGÇ
Trading Vs. Investing
The individual who does his ownthinking must learn to question the majoritys point of view, for they areusually wrong. I am completely convinced of the inevitability of loss whenattempting to secure a safe income of small return, that I constantly suggestspeculation rather than investment as the po