Tuesday 30 November 2021
Quote for the day
"One can choose to go back toward safety or forward toward growth. Growth must be chosen again and again; fear must be overcome again and again." - Abraham Maslow
Monday 29 November 2021
Quote for the day
"Life's challenges are not supposed to paralyze you, they're supposed to help you discover who you are." - - Bernice Johnson Reagon
Sunday 28 November 2021
Quote for the day
"We are made wise not by the recollection of our past, but by the responsibility for our future." - George Bernard Shaw
Saturday 27 November 2021
Quote for the day
"Money is always eager and ready to work for anyone who is ready to employ it." - Idowu Koyenikan
Friday 26 November 2021
Thursday 25 November 2021
Wednesday 24 November 2021
Tuesday 23 November 2021
Quote for the day
"We need to accept that we won’t always make the right decisions, that we’ll screw up royally sometimes – understanding that failure is not the opposite of success, it’s part of success." - Arianna Huffington
Monday 22 November 2021
Quote for the day
"The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge." - Paul Tudor Jones
Sunday 21 November 2021
Quote for the day
"We think, mistakenly, that success is the result of the amount of time we put in at work, instead of the quality of time we put in." - Ariana Huffington
Saturday 20 November 2021
18 Things Financially Mature People Don’t Do
By Kyle Young
Jaws dropped during that classic scene in the 1995 movie Sabrina. Sabrina's father is revealed to be more than just a quiet chauffeur with a passion for good books. He's shockingly a millionaire! How did he accrue such wealth on a presumably modest salary?
Jaws dropped during that classic scene in the 1995 movie Sabrina. Sabrina's father is revealed to be more than just a quiet chauffeur with a passion for good books. He's shockingly a millionaire! How did he accrue such wealth on a presumably modest salary?
By imitating the investing habits of his prosperous employer. You too can learn from financially mature people. You can avoid costly mistakes by watching what they do – and perhaps more importantly, what they don't do.
A recent Yahoo Finance study found that “fewer than half of Americans are spending less than they earn.” This problem is compounded by high credit card interest rates. If you're finding it difficult to stick to a budget, try switching to cash as your currency. This will quickly stop the bleeding because once cash is gone the spending has to stop.
3. They don't pay for subscriptions they aren't using
Gym memberships, magazine subscriptions, and season tickets to your favorite team’s games are great – if you actually use them. Spend some time going through your credit card statement and cancel a few forgotten subscriptions. Chances are, you won’t miss them.
5. They don't automatically spend “surprise money”
Tax returns and birthday money don't have to be spent the day they're received. Put some in savings, or use it to pay off debt.
6. They don't use shopping to help them feel better
Shark Tank's Kevin O'Leary argues that “retail therapy” should be avoided altogether. But come on now. We're the species that invented sugarless candy – surely we can redeem the post-break up shopping spree?
7. They don't gift shop at the last minute
It happens to the best of us. We remember a birthday or anniversary with mere hours to spare. Then we’re off the nearest store in search of a last-minute gift and in our panic, we buy something expensive to hide the fact that we don’t have a card and the gift isn’t wrapped. Gifts are given to express love and affection. Shopping a little sooner can help you find a thoughtful, less expensive gift that shows how much you care.
8. They don't eat out every meal
A recent experiment conducted by the Boston Globe found one home cooked meal cost half the price of a comparable restaurant meal.
9. They don't waste leftovers
One of the easiest ways to make eating out more affordable is to simply save your leftovers. You can turn one meal into two.
11. They don't spend money without stopping to think
Have you ever examined an old purchase and wondered, “What was I thinking?”
12. They don't buy clothes they won’t wear regularly
Closet full of clothes yet “nothing to wear”? Save space and money by searching for versatile pieces you can't wait to show off. Here's a minimalist who's happy to show you how (with photos).
13. They don't buy something just because it's a discount
An old episode of The Lucy Show poked fun at this common mistake. Lucy chided her friend for buying a 50lb bag of dog food. Her friend defended herself saying “that was half price.” To which Lucy hilariously replied, “You don't have a dog!” If you find yourself thinking “These shoes are half off, and they're not that bad,” take the money and buy a pair of shoes you actually like. You're more likely to get some use out of them.
14. They don't buy anything without asking the price
It's an old trick. Selling stuff without ever mentioning the price and it works, because we're often too embarrassed to ask how much something costs. We don't want anyone thinking we're poor, but we have it backwards. Poor is what you'll be if you don't ask the hard questions.
15. They don't avoid expenses that save them trouble and money in the future
Getting the oil changed may be annoying, but it's cheaper than a new car. Getting your teeth cleaned may be uncomfortable, but would you rather have a root canal? When you're trying to cut back on spending, trim from the fat, not the essentials.
16. They don't buy into get rich quick schemes
When people really do strike proverbial gold, they probably don't tell the world about it in a “business opportunity” seminar. Financially mature people know that wealth comes through hard work and good choices over time.
17. They don't forget to set financial goals
Without a clear goal and a doable plan, people tend to stay right where they are. Good goals illuminate the path between where you are and where you want to be.
18. They don't let past mistakes keep them from improving
Peek at the statistics and you'll quickly learn most of us aren't very good with money. With practice, patience, and persistence, you can grow into financial maturity. You just have to get started. There's an old saying. If you want a big oak tree in your backyard, the best time to plant it was 20 years ago. The second best time? Right now.
Use these tips to start imitating the financially mature. Because let's face it. Life's more fun when there's some money in the bank.
http://www.lifehack.org/
1. They don't spend more than they make
A recent Yahoo Finance study found that “fewer than half of Americans are spending less than they earn.” This problem is compounded by high credit card interest rates. If you're finding it difficult to stick to a budget, try switching to cash as your currency. This will quickly stop the bleeding because once cash is gone the spending has to stop.
2. They don't wait until the end of the month to see how their money is doing
Credit card bills should be formalities, not surprises. Expense tracking apps(or a pen and paper) help you stay on top of your money.
Credit card bills should be formalities, not surprises. Expense tracking apps(or a pen and paper) help you stay on top of your money.
3. They don't pay for subscriptions they aren't using
Gym memberships, magazine subscriptions, and season tickets to your favorite team’s games are great – if you actually use them. Spend some time going through your credit card statement and cancel a few forgotten subscriptions. Chances are, you won’t miss them.
4. They don't overlook small expenses
Small expenses add up. Look for opportunities to reduce them. Relax the air conditioning when you leave the house, turn off the lights in an empty room, use a refillable water bottle instead of buying a new case every week.
Small expenses add up. Look for opportunities to reduce them. Relax the air conditioning when you leave the house, turn off the lights in an empty room, use a refillable water bottle instead of buying a new case every week.
5. They don't automatically spend “surprise money”
Tax returns and birthday money don't have to be spent the day they're received. Put some in savings, or use it to pay off debt.
6. They don't use shopping to help them feel better
Shark Tank's Kevin O'Leary argues that “retail therapy” should be avoided altogether. But come on now. We're the species that invented sugarless candy – surely we can redeem the post-break up shopping spree?
Here's an idea: When heartbreak or frustration beckons you to the mall, think of one item you actually need. Maybe it's a new pair of work shoes or a birthday gift for a friend. Set a “budget” for yourself and take only the CASH for that item. Then, enjoy a little shopping.
7. They don't gift shop at the last minute
It happens to the best of us. We remember a birthday or anniversary with mere hours to spare. Then we’re off the nearest store in search of a last-minute gift and in our panic, we buy something expensive to hide the fact that we don’t have a card and the gift isn’t wrapped. Gifts are given to express love and affection. Shopping a little sooner can help you find a thoughtful, less expensive gift that shows how much you care.
8. They don't eat out every meal
A recent experiment conducted by the Boston Globe found one home cooked meal cost half the price of a comparable restaurant meal.
9. They don't waste leftovers
One of the easiest ways to make eating out more affordable is to simply save your leftovers. You can turn one meal into two.
10. They don't let purchased food expire
Throwing away food is throwing away money. If you struggle with stinky fridge syndrome, try making more frequent trips to the grocery store. Buy exactly what you'll need for the next 2 or 3 days, instead of “stocking up” for the week or the month.
Throwing away food is throwing away money. If you struggle with stinky fridge syndrome, try making more frequent trips to the grocery store. Buy exactly what you'll need for the next 2 or 3 days, instead of “stocking up” for the week or the month.
11. They don't spend money without stopping to think
Have you ever examined an old purchase and wondered, “What was I thinking?”
Financially mature people ask the right question: “Do I absolutely love this?” Skip this step, and you'll find yourself in need of a garage sale.
12. They don't buy clothes they won’t wear regularly
Closet full of clothes yet “nothing to wear”? Save space and money by searching for versatile pieces you can't wait to show off. Here's a minimalist who's happy to show you how (with photos).
13. They don't buy something just because it's a discount
An old episode of The Lucy Show poked fun at this common mistake. Lucy chided her friend for buying a 50lb bag of dog food. Her friend defended herself saying “that was half price.” To which Lucy hilariously replied, “You don't have a dog!” If you find yourself thinking “These shoes are half off, and they're not that bad,” take the money and buy a pair of shoes you actually like. You're more likely to get some use out of them.
14. They don't buy anything without asking the price
It's an old trick. Selling stuff without ever mentioning the price and it works, because we're often too embarrassed to ask how much something costs. We don't want anyone thinking we're poor, but we have it backwards. Poor is what you'll be if you don't ask the hard questions.
15. They don't avoid expenses that save them trouble and money in the future
Getting the oil changed may be annoying, but it's cheaper than a new car. Getting your teeth cleaned may be uncomfortable, but would you rather have a root canal? When you're trying to cut back on spending, trim from the fat, not the essentials.
16. They don't buy into get rich quick schemes
When people really do strike proverbial gold, they probably don't tell the world about it in a “business opportunity” seminar. Financially mature people know that wealth comes through hard work and good choices over time.
17. They don't forget to set financial goals
Without a clear goal and a doable plan, people tend to stay right where they are. Good goals illuminate the path between where you are and where you want to be.
18. They don't let past mistakes keep them from improving
Peek at the statistics and you'll quickly learn most of us aren't very good with money. With practice, patience, and persistence, you can grow into financial maturity. You just have to get started. There's an old saying. If you want a big oak tree in your backyard, the best time to plant it was 20 years ago. The second best time? Right now.
Use these tips to start imitating the financially mature. Because let's face it. Life's more fun when there's some money in the bank.
http://www.lifehack.org/
Quote for the day
"Hard work compounds like interest, and the earlier you do it, the more time you have for the benefits to pay off." - Sam Altman
Friday 19 November 2021
Quote for the day
"So many things are possible just as long as you don’t know they’re impossible." - Norton Juster
Thursday 18 November 2021
“Wealth is first a state of mind my friend.”
My Daughter Won’t Marry A Poor Man, Says Bill Gates
By Belove Olocha
Billionaire and founder of Microsoft, Bill Gates, has said he will not allow his daughter to marry a poor man.
The billionaire businessman made this known while attending a conference on Investment and Finance in the United States recently.
Giving responses during the question and answer section of the conference a man asked Gates a question that made everyone laugh.
He asked if Gates, as one of the world’s richest men, would accept his daughter to marry a poor or modest man.
The answer Gates gave, however, shocked everyone.
He said: "First, understand that wealth does not mean having a well-filled bank account. Wealth is primarily the ability to create wealth."
Example, someone who wins the lottery or gambling. Even winning 100 million is not a rich man: he’s a poor man with a lot of money, that’s why 90 per cent of lottery millionaires go back to being poor after five years.
You also have rich people who can’t afford it. For example, most entrepreneurs
They are already in the way of wealth, even if they don’t have money, because they are developing their financial intelligence and that’s wealth.
How are the rich and the poor different?
To be simple: The rich can die to become rich, while the poor can kill to stay.
If you see a young man who decides to graduate, learn new things, trying to improve continually, know that he is a rich man.
By Belove Olocha
Billionaire and founder of Microsoft, Bill Gates, has said he will not allow his daughter to marry a poor man.
The billionaire businessman made this known while attending a conference on Investment and Finance in the United States recently.
Giving responses during the question and answer section of the conference a man asked Gates a question that made everyone laugh.
He asked if Gates, as one of the world’s richest men, would accept his daughter to marry a poor or modest man.
The answer Gates gave, however, shocked everyone.
He said: "First, understand that wealth does not mean having a well-filled bank account. Wealth is primarily the ability to create wealth."
Example, someone who wins the lottery or gambling. Even winning 100 million is not a rich man: he’s a poor man with a lot of money, that’s why 90 per cent of lottery millionaires go back to being poor after five years.
You also have rich people who can’t afford it. For example, most entrepreneurs
They are already in the way of wealth, even if they don’t have money, because they are developing their financial intelligence and that’s wealth.
How are the rich and the poor different?
To be simple: The rich can die to become rich, while the poor can kill to stay.
If you see a young man who decides to graduate, learn new things, trying to improve continually, know that he is a rich man.
If you see a young man who thinks the problem is the state, and thinks the rich are all thieves and constantly criticize, know that he is a poor man.
The rich are convinced that they only need information and training to take off, the poor think others should give money for them to take off.
In conclusion, when I say my daughter is not going to marry a poor man, I’m not talking about money. I’m talking about this man’s ability to create wealth.”
He added: “Sorry for what I’m going to say, but most criminals are poor people. When they are in front of money they lose their minds that’s why they steal, rob etc…
To them, that’s grace, because they don’t know how they themselves could make money.
One day, a bank vigilante found a bag full of money, took the bag and went to deliver it to the bank manager.
People called this gentleman an idiot, but actually, this gentleman was just a rich man who had no money.
The rich are convinced that they only need information and training to take off, the poor think others should give money for them to take off.
In conclusion, when I say my daughter is not going to marry a poor man, I’m not talking about money. I’m talking about this man’s ability to create wealth.”
He added: “Sorry for what I’m going to say, but most criminals are poor people. When they are in front of money they lose their minds that’s why they steal, rob etc…
To them, that’s grace, because they don’t know how they themselves could make money.
One day, a bank vigilante found a bag full of money, took the bag and went to deliver it to the bank manager.
People called this gentleman an idiot, but actually, this gentleman was just a rich man who had no money.
One year later, the bank offered him a receptionist position, three years later he was in charge of clients and 10 years later, he manages the regional branch of that bank. He manages hundreds of employees and their annual bonuses are beyond the value he could have stolen.
“Wealth is first a state of mind my friend.”
Source: https://newsbreak.ng/
“Wealth is first a state of mind my friend.”
Source: https://newsbreak.ng/
Quote for the day
"In matters of style, swim with the current; in matters of principle, stand like a rock." - Thomas Jefferson
Wednesday 17 November 2021
Tuesday 16 November 2021
Quote for the day
"The only way to achieve the impossible is to believe it is possible." - Charles Kingsleigh
Monday 15 November 2021
Sunday 14 November 2021
The 4 Key Things Warren Buffett Looks At
In the book “The Warren Buffett Way” by Robert Hagstrom, the author introduces four tenets that Buffett employs in his investment decisions.
While Buffett may not use all of them for every investment, these common attributes consistently surface as guidance for his choices.
The four tenets are: Business, Management, Financial and Market.
Business Tenet
As a long-term investor seeks to park his money in a business without having to worry if it’ll still be around tomorrow, it is crucial that he understands the business itself.
To quote Albert Einstein: If you can’t explain it simply, you don’t understand it well enough. A simple test would be explaining it to someone who knows nothing about the business.
The business should be consistently profitable. This can be checked by looking at its past financial performance for sustainable growth in its top and bottom lines.
More importantly, it should continue to be profitable. This will require judgement on the outlook of the industry as well as the company.
Management Tenet
In life, we surround ourselves with people whom are honest and sensible and we trust their judgement because we believe they have our well-being at heart. In business, the same concept applies when choosing a management team.
We know that all businesses go through phases of good and bad. While it’s easy for management to deliver positive news, it’s tough for them when the company is not performing. This is where candor is prized. A management team that is willing to tell you the truth, despite the difficulties faced.
We want a management team that is logical in their decisions, particularly if it goes against the grain of the general view, but is beneficial to the company in the long run.
Financial Tenet
Firstly, one key difference is the focus of profitability, the book suggests an emphasis on return on equity, over earnings per share.
As a company makes a profit, any balance after deducting dividend payments is kept as retained earnings in equity. This means that earnings base for next year has increased.
Buffett does not see anything phenomenal about a company that has increased its earnings by 10 percent, if its earnings base increased by the same amount. It’s akin to compounding interest in a savings account.
Return on equity on the other hand, shows how well a firm’s management is able to generate a return on its operations from the capital at hand.
Secondly, we fall back on the basic profit margins. Simply put, the higher the margins, the higher profit the company is able to extract out of each dollar of revenue.
Next, Buffett prefers owners’ earnings compared to cash flow. To calculate the former, we take net income, add depreciation, minus capital expenditure (capex) and additional working capital.
The difference between the two formulas is capex. Buffett argues that a company that does not make the necessary capex will surely decline. Thus, he views it as a critical component to assess the owners’ actual earnings.
Last in the line of financial tenets, we must question if the company is able to deploy its retained earnings profitability. If a company’s retained earnings go up by $1 per share, the market value should also go up by at least $1.
If the company is able to earn more than $1 on that dollar, the market will likely price it higher as well. If it is unable to do so, then the firm’s shareholders will be better served if the company pays out the earnings via dividends instead.
Market Tenet
Last but not least, we should derive an estimated value of the business. Value and price are not to be confused, value is what you get, price is what you pay.
Buffett, the star pupil of Benjamin Graham, the late father of value investing, stressed a need for margin of safety when purchasing a stock. This is the difference between the value and price of a business.
After all, overpaying for a business does not provide an investor with sufficient room for manoeuvre. Even if it satisfies the first three tenets, we must be ready to admit that we may be wrong and share price could go against us.
A large margin of safety allows one to exit the stock, hopefully, without much capital loss.
Next up, we’ll go through a case study by assessing a company using these four tenets.
Disclaimer: All information is credited to the book “The Warren Buffett Way” and its author, Robert Hagstrom.
Spurce: http://www.sharesinv.com/
While Buffett may not use all of them for every investment, these common attributes consistently surface as guidance for his choices.
The four tenets are: Business, Management, Financial and Market.
Business Tenet
As a long-term investor seeks to park his money in a business without having to worry if it’ll still be around tomorrow, it is crucial that he understands the business itself.
To quote Albert Einstein: If you can’t explain it simply, you don’t understand it well enough. A simple test would be explaining it to someone who knows nothing about the business.
The business should be consistently profitable. This can be checked by looking at its past financial performance for sustainable growth in its top and bottom lines.
More importantly, it should continue to be profitable. This will require judgement on the outlook of the industry as well as the company.
Management Tenet
In life, we surround ourselves with people whom are honest and sensible and we trust their judgement because we believe they have our well-being at heart. In business, the same concept applies when choosing a management team.
We know that all businesses go through phases of good and bad. While it’s easy for management to deliver positive news, it’s tough for them when the company is not performing. This is where candor is prized. A management team that is willing to tell you the truth, despite the difficulties faced.
We want a management team that is logical in their decisions, particularly if it goes against the grain of the general view, but is beneficial to the company in the long run.
Financial Tenet
Firstly, one key difference is the focus of profitability, the book suggests an emphasis on return on equity, over earnings per share.
As a company makes a profit, any balance after deducting dividend payments is kept as retained earnings in equity. This means that earnings base for next year has increased.
Buffett does not see anything phenomenal about a company that has increased its earnings by 10 percent, if its earnings base increased by the same amount. It’s akin to compounding interest in a savings account.
Return on equity on the other hand, shows how well a firm’s management is able to generate a return on its operations from the capital at hand.
Secondly, we fall back on the basic profit margins. Simply put, the higher the margins, the higher profit the company is able to extract out of each dollar of revenue.
Next, Buffett prefers owners’ earnings compared to cash flow. To calculate the former, we take net income, add depreciation, minus capital expenditure (capex) and additional working capital.
The difference between the two formulas is capex. Buffett argues that a company that does not make the necessary capex will surely decline. Thus, he views it as a critical component to assess the owners’ actual earnings.
Last in the line of financial tenets, we must question if the company is able to deploy its retained earnings profitability. If a company’s retained earnings go up by $1 per share, the market value should also go up by at least $1.
If the company is able to earn more than $1 on that dollar, the market will likely price it higher as well. If it is unable to do so, then the firm’s shareholders will be better served if the company pays out the earnings via dividends instead.
Market Tenet
Last but not least, we should derive an estimated value of the business. Value and price are not to be confused, value is what you get, price is what you pay.
Buffett, the star pupil of Benjamin Graham, the late father of value investing, stressed a need for margin of safety when purchasing a stock. This is the difference between the value and price of a business.
After all, overpaying for a business does not provide an investor with sufficient room for manoeuvre. Even if it satisfies the first three tenets, we must be ready to admit that we may be wrong and share price could go against us.
A large margin of safety allows one to exit the stock, hopefully, without much capital loss.
Next up, we’ll go through a case study by assessing a company using these four tenets.
Disclaimer: All information is credited to the book “The Warren Buffett Way” and its author, Robert Hagstrom.
Spurce: http://www.sharesinv.com/
Saturday 13 November 2021
Quote for the day
"The credit belongs to the man who is actually in the arena; whose face is marred with dust and sweat; who strives valiantly, who errs and may fall again and again, because there is no effort without error or shortcoming." - Theodore Roosevelt
Friday 12 November 2021
Quote for the day
"If one advances confidently in the direction of his dreams, and endeavors to live the life which he has imagined, he will meet with a success unexpected in common hours." - Henry David Thoreau
Thursday 11 November 2021
Quote for the day
"You can tell whether a man is clever by his answers. You can tell whether a man is wise by his questions." - Naguib Mahfouz
Wednesday 10 November 2021
Tuesday 9 November 2021
Quote for the day
"Try to learn something about everything and everything about something." - Thomas Huxley
Monday 8 November 2021
Quote for the day
"The main purpose of the stock market is to make fools of as many men as possible." - Bernard Baruch.
Sunday 7 November 2021
Doug Casey’s 9 Secrets for Successful Speculation
As you read the list below, think about how you can learn more about each secret and adapt it to your own most effective use.
Secret #1: Contrarianism takes courage.
Everyone knows the essential investment formula: “Buy low, sell high,” but it is so much easier said than done, it might as well be a secret formula.
The way to really make it work is to invest in an asset or commodity that people want and need but that for reasons of market cyclicality or other temporary factors, no one else is buying. When the vast majority thinks something necessary is a bad investment, you want to be a buyer—that’s what it means to be a contrarian.
Obviously, if this were easy, everyone would do it, and there would be no such thing as a contrarian opportunity. But it is very hard for most people to think independently enough to risk hard-won cash in ways others think is mistaken or too dangerous. Hence, fortune favors the bold.
Secret #2: Success takes discipline.
It’s not just a matter of courage, of course; you can bravely follow a path right off a cliff if you’re not careful. So you have to have a game plan for risk mitigation. You have to expect market volatility and turn it to your advantage. And you’ll need an exit strategy.
The ways a successful speculator needs discipline are endless, but the most critical of all is to employ smart buying and selling tactics, so you don’t get goaded into paying too much or spooked into selling for too little.
Secret #3: Analysis over emotion.
This may seem like an obvious corollary to the above, but it’s a point well worth stressing on its own. To be a successful speculator does not require being an emotionless robot, but it does require abiding by reason at times when either fear or euphoria tempt us to veer from our game plans.
When a substantial investment in a speculative pick tanks—for no company-specific reason—the sense of gut-wrenching fear is very real. Panic often causes investors to sell at the very time they should be backing up the truck for more.
Similarly, when a stock is on a tear and friends are congratulating you on what a genius you are, the temptation to remain fully exposed—or even take on more risk in a play that is no longer undervalued—can be irresistible. But to ignore the numbers because of how you feel is extremely risky and leads to realizing unnecessary losses and letting terrific gains slip through your fingers.
Secret #4: Trust your gut.
Trusting a gut feeling sounds contradictory to the above, but it’s really not. The point is not to put feelings over logic, but to listen to what your feelings tell you—particularly about company people you meet and their words in press releases.
“People” is the first of Doug Casey’s famous Eight Ps of Resource Stock Evaluation, and if a CEO comes across like a used-car salesman, that is telling you something. If a press release omits critical numbers or seems to be gilding the lily, that, too, tells you something.
The more experience you accumulate in whatever sector you focus on, the more acute your intuitive “radar” becomes: listen to it. There’s nothing more frustrating than to take a chance on a story that looked good on paper but that your gut was warning you about, and then the investment disappoints. Kicking yourself is bad for your knees.
Secret #5: Assume Bulshytt.
As a speculator, investor, or really anyone who buys anything, you have to assume that everyone in business has an angle. Their interests may coincide with your own, but you can’t assume that.
It’s vital to keep in mind whom you are speaking with and what their interest might be. This applies to even the most honest people in mining, which is such a difficult business, no mine would ever get built if company CEOs put out a press release every time they ran into a problem.
A mine, from exploration to production to reclamation, is a non stop flow of problems that need solving. But your brokers want to make commissions, your conference organizers want excitement, your bullion dealers want volume, etc. And, yes, your newsletter writers want to eat as well; ask yourself who pays them and whether their interests are aligned with yours or the companies they cover.
(Bulshytt is not a typo, but a reference to Neal Stephenson's brilliant novel, Anathem, which defines the term, briefly, as words, phrases, or even entire books or speeches that are misleading or empty of meaning.)
Secret #6: The trend is your friend.
No one can predict the future, but anyone who applies him- or herself diligently enough can identify trends in the world that will have predictable consequences and outcomes.
If you identify a trend that is real—or that at least has an overwhelming amount of evidence in its favor—it can serve as both compass and chart, keeping you on course regardless of market chaos, irrational investors, and the ever-present flood of bulshytt.
Knowing that you are betting on a trend that makes great sense and is backed by hard data also helps maintain your courage. Remember; prices may fluctuate, but price and value are not the same thing. If you are right about the trend, it will be your friend. Also, remember that it’s easier to be right about the direction of a trend than its timing.
Secret #7: Only speculate with money you can afford to lose.
This is a logical corollary to the above. If you bet the farm or gamble away your children’s college tuition on risky speculations—and only relatively risky investments have the potential to generate the extraordinary returns that justify speculating in the first place—it will be almost impossible to maintain your cool and discipline when you need it.
As Doug likes to say; it’s better to risk 10% of your capital shooting for 100% gains than to risk 100% of your capital shooting for 10% gains.
Secret #8: Stack the odds in your favour.
Given the risks inherent in speculating for extraordinary gains, you have to stack the odds in your favor. If you can’t, don’t play.
There are several ways to do this, including betting on People with proven track records, buying when market corrections put companies on sale way below any objective valuation, and participating in private placements. The most critical may be to either conduct the due diligence most investors are too busy to be bothered with, or find someone you can trust to do it for you.
Secret #9: You can’t kiss all the girls.
This is one of Doug’s favourite sayings, and though seemingly obvious, it’s one of the main pitfalls for unwary speculators.
When you encounter a fantastic story or a stock going vertical and it feels like it’s getting away from you, it can be very, very difficult to do all the things I mention above. I can tell you from firsthand experience, it’s agonizing to identify a good bet, arrive too late, and see the ship sail off to great fortune—without you.
But if you let that push you into paying too much for your speculative picks, you can wipe out your own gains, even if you’re betting on the right trends.
You can’t kiss all the girls, and it only leads to trouble if you try. Fortunately, the universe of possible speculations is so vast, it simply doesn't matter if someone else beats you to any particular one; there will always be another to ask for the next dance. Bide your time, and make your move only when all of the above is on your side.
Extracted article from http://www.caseyresearch.com/articles/doug-caseys-9-secrets-for-successful-speculation-1
Extracted article from http://www.caseyresearch.com/articles/doug-caseys-9-secrets-for-successful-speculation-1
Quote for the day
"A handful of men have become very rich by paying attention to details that most others ignored." - Henry Ford
Saturday 6 November 2021
Quote for the day
"Remember that stocks are never too high for you to begin buying or too low to begin selling." - Jesse Livermore
Friday 5 November 2021
Quote for the day
"Investing money is the process of committing resources in a strategic way to accomplish a specific objective." - Alan Gotthardt,
Thursday 4 November 2021
Trading Lessons from The Art of War
Revered the world over for centuries as the essential text for warfare and battle by the ancient philosopher and general Sun Tzu (544 BC–496 BC) explains the principles for dealing with war, personal conflicts, and achieving success in the battles of life.
Here are ten principles I believe we can translate to trading the markets.
“Appear weak when you are strong, and strong when you are weak.” – Sun Tzu, The Art of War
The markets can defeat us when it appears strong when it is extremely overbought and due for a reversal or it appears weak but is extremely oversold and due for a bounce. When a daily chart is at the 70 RSI, 3rd upper Bollinger Band, or 3rd upper ATR Keltner Channel it may appear strong but the odds are it is weak and ready to reverse lower. When a daily chart is at the 30 RSI, 3rd lower Bollinger Band, or 3rd lower ATR Keltner Channel it may appear weak but the odds are it is strong and ready to bounce.
“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.” – Sun Tzu, The Art of War
A trader must know both their own weaknesses and strength and their trading system’s positive expectancy thoroughly. If you are self aware and know how your system works you don’t need to stress over the results of your next 100 trades.
“The supreme art of war is to subdue the enemy without fighting.” – Sun Tzu, The Art of War
A trader should not be trying to beat the market they should be going with the flow of price action.
“Let your plans be dark and impenetrable as night, and when you move, fall like a thunderbolt.” – Sun Tzu, The Art of War
Don’t talk about your positions and don’t try to make predictions and have strong opinions, just trade your strategy with focus and discipline and make money quietly.
“Supreme excellence consists of breaking the enemy’s resistance without fighting.” – Sun Tzu, The Art of War
Don’t fight trends that are taking place only enter at the moment of a new break out of a range.
“In the midst of chaos, there is also opportunity” – Sun Tzu, The Art of War
Extreme market moves and volatility can create some of the best trading opportunities.
“Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win” – Sun Tzu, The Art of War
Profitable traders first win by backtesing, doing historical chart studies, and creating a trading system with a positive expectancy model, then they start trading real money. Unprofitable traders just start buying and selling based on random opinions and hope to make money.
“Engage people with what they expect; it is what they are able to discern and confirms their projections. It settles them into predictable patterns of response, occupying their minds while you wait for the extraordinary moment — that which they cannot anticipate.” – Sun Tzu, The Art of War
Find repeatable patterns in the price action of the markets that you can use to create profitable trading signals for.
“Opportunities multiply as they are seized.” – Sun Tzu
A larger watchlist of stocks and markets provides more opportunities for profitable trades across additional charts if they backtest well.
“Thus we may know that there are five essentials for victory:
1. He will win who knows when to fight and when not to fight.
2. He will win who knows how to handle both superior and inferior forces.
3. He will win whose army is animated by the same spirit throughout all its ranks.
4. He will win who, prepared himself, waits to take the enemy unprepared.
5. He will win who has military capacity and is not interfered with by the sovereign.”
– Sun Tzu, The Art of War
There are five essentials for profitable trading:
1. There is a time to trade and time not to trade, you must know the difference to make money.
Here are ten principles I believe we can translate to trading the markets.
“Appear weak when you are strong, and strong when you are weak.” – Sun Tzu, The Art of War
The markets can defeat us when it appears strong when it is extremely overbought and due for a reversal or it appears weak but is extremely oversold and due for a bounce. When a daily chart is at the 70 RSI, 3rd upper Bollinger Band, or 3rd upper ATR Keltner Channel it may appear strong but the odds are it is weak and ready to reverse lower. When a daily chart is at the 30 RSI, 3rd lower Bollinger Band, or 3rd lower ATR Keltner Channel it may appear weak but the odds are it is strong and ready to bounce.
“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.” – Sun Tzu, The Art of War
A trader must know both their own weaknesses and strength and their trading system’s positive expectancy thoroughly. If you are self aware and know how your system works you don’t need to stress over the results of your next 100 trades.
“The supreme art of war is to subdue the enemy without fighting.” – Sun Tzu, The Art of War
A trader should not be trying to beat the market they should be going with the flow of price action.
“Let your plans be dark and impenetrable as night, and when you move, fall like a thunderbolt.” – Sun Tzu, The Art of War
Don’t talk about your positions and don’t try to make predictions and have strong opinions, just trade your strategy with focus and discipline and make money quietly.
“Supreme excellence consists of breaking the enemy’s resistance without fighting.” – Sun Tzu, The Art of War
Don’t fight trends that are taking place only enter at the moment of a new break out of a range.
“In the midst of chaos, there is also opportunity” – Sun Tzu, The Art of War
Extreme market moves and volatility can create some of the best trading opportunities.
“Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win” – Sun Tzu, The Art of War
Profitable traders first win by backtesing, doing historical chart studies, and creating a trading system with a positive expectancy model, then they start trading real money. Unprofitable traders just start buying and selling based on random opinions and hope to make money.
“Engage people with what they expect; it is what they are able to discern and confirms their projections. It settles them into predictable patterns of response, occupying their minds while you wait for the extraordinary moment — that which they cannot anticipate.” – Sun Tzu, The Art of War
Find repeatable patterns in the price action of the markets that you can use to create profitable trading signals for.
“Opportunities multiply as they are seized.” – Sun Tzu
A larger watchlist of stocks and markets provides more opportunities for profitable trades across additional charts if they backtest well.
“Thus we may know that there are five essentials for victory:
1. He will win who knows when to fight and when not to fight.
2. He will win who knows how to handle both superior and inferior forces.
3. He will win whose army is animated by the same spirit throughout all its ranks.
4. He will win who, prepared himself, waits to take the enemy unprepared.
5. He will win who has military capacity and is not interfered with by the sovereign.”
– Sun Tzu, The Art of War
There are five essentials for profitable trading:
1. There is a time to trade and time not to trade, you must know the difference to make money.
2. A trader must know how to trade in different types of markets, uptrends, downtrends, sideways, and volatile.
3. A trader must not let their emotions be moved to lose discipline by euphoria after wins or depression after losses.
4. A trader’s primary job is to have the patience to wait for their signals and not chase price action.
5. That trader who can follow their profitable system without being led astray by their ego or emotions will find success.
Source: www.newtraderu.com
Quote for the day
"Speculation is an effort, probably unsuccessful, to turn a little money into a lot. Investment is an effort, which should be successful, to prevent a lot of money from becoming a little." - Fred Schwed Jr.,
Wednesday 3 November 2021
Quote for the day
"Games are won by players who focus on the playing field –- not by those whose eyes are glued to the scoreboard." - Warren Buffett
Tuesday 2 November 2021
Quote for the day
"When money realizes that it is in good hands, it wants to stay and multiply in those hands." - Idowu Koyenikan
Monday 1 November 2021
Quote for the day
"It is always the best discretion to let the market show us where it is going and just simply follow (this would be prudent), rather than predict where the market is going and place a position (this would be gambling)" - .Anne-Marie Beiynd
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