If you are going to trade stocks, you just have to follow one rule and remember one thing. That rule is always have a definite knowledge advantage about the company you are trading, and always remember that every stock transaction has a sucker, and you have to know whether its you or the person on the other side of the trade. No one buys a stock from your, or sells one to you knowing they are leaving money on the table.
Mark Cuban, the BlogMaverick, posted at The Stock Market is for suckers.
Don’t forget to subscribe to the feed for this blog! Click here…
We’re in a very confusing atmosphere. People didn’t really know what to make of a 300-point rally in the Dow the other day, but my main message was that 300-point rallies from the Dow don’t happen in bull markets.
In fact, they never happened in the bull market from October ’02 to October ’07, but it has happened 6 times in this bear market and happened 12 times in the last bear market.
You don’t get moves like that in bull markets. As Rich Bernstein has said time and again, “This is the hallmark of a recession and a hallmark of a bear market.”
David A. Rosenberg, Conference Call Notes, published under the title “The Elusive Bottom” at InvestorInSight, August 2008.
Your greatest risk isn’t that you’ll make mistakes that will cost you. Your greatest risk is that you’ll miss opportunities. You need an entrepreneurial mindset, not an employee mindset. Don’t be too concerned with the risk of loss Ã¢â‚¬â€ be more concerned with the risk of missed gains. It’s what you don’t know and what you don’t do that will hurt you the worst. Blogging is cheap. Your expenses and financial risk should be minimal. Your real concern should be missing opportunities that would have made you money very easily. You need to develop antennae that can listen out for new opportunities.
Quoted in How to Make Money From Your Blog by Steve Pavlina.