Cutting losses?
I think mrmarket is against the cutting of almost everything.....including fur.
I think mrmarket is against the cutting of almost everything.....including fur.
Cutting losses is for losers
- Thread starter mrmarket
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What about the thought, which may even occur to MBAs, to consider the cost of opportunity lost? For example, a 28% loss needs more than a 28% gain just to break even, and looking firstly for a 15% gain, but then having that knocked back because of losses and needing now a 30% gain in order just to break even before you can go ahead with the original plan of holding for a 15% profit, let's say, and so holding the issue exposed in the marketplace giving the position the needed amount of time to make that gain and/or for the Street to realize the stock's true value, also gives time for the competition to come out with a better product and change the outlook for the holding, for the marketplace to change, there could be mismanagement, who knows what that will affect the company (consider poor ol' Martha), and yet, there may have been a better place, or places, to invest throughout the interim - if one cut their losses - not necessitating any of that at all. But that's the world of non-investors, isn't it?
Cutting Losses is an intergral part of trading...even investing...william o neil has a 8% cut off rule
Quote from indioo:
give the guy a break!!!
he might have the last laugh in a month or two, who really knows. COH seems to have great fundamentals over the next few years so if i was a betting man, i would bet COH to hit 57 in that time frame.
His other picks have worked out and from his method its very apparent that he actually does a lot of homework. I congratulate the guy for having so much discipline.
hell i'll even give a look at his recommendations but i'll only buy if the market pulls back a bitmarket looks a bit toppy for the next lil while so why not buy COH at 45
He bought COH @ 53, when it gets to $45, he's down 15%. Fifteen percent!! And you say "he may have the last laugh?" That's 8 points of laughing the NYSE is doing into his grimy pockets. Why not buy @ 45, rather than @ 53, and not lose the 8 points, if he really wants to laugh and make money?
You need to worm your way through his hairy body, but you'll find his BS.
mrmarket, it is obvious you are a trading newb. the things you discuss, i thought about 4 years ago when i first started (no stops, CANSLIM, etc.).
Gold, Sliver, precious gems and various metals can be crafted into Jewelry. Jewelry value is based on labor not the underlying material only.
I view investing as the underlying material
I view trading as Jewelry.
It's funny many fundamental traders are speaking publically about the market is becoming a shorter term trading market and buy and hold is gone in today's environment.
Mr. Market's returns based on what is sold only and I assume this 8% per year someone mentions is not considering his current situation. It also seems that Mr. Market goes long only....I do not know...I am not a follower of his group. I do know many Investors do not go short. The FACT that EVERY stock has experianced a SUSTAINED decline in price in the last 10 years once, might give a SUSTAINED drawdown for the "long side only" investor methodology. Now for years the Worden Brothers in TC 2000 never went short and did not suggest it to their suscribers. Now, I would never put Mr. Market in the same class as the Worden Brothers and never offer such a dis-respect to the Wordens. But they were not a Buy and Hold group. Mr Market uses fundamental analysis to Buy and Hold and publically discounts the use of Technical analysis. Where the Holdens used BOTH. Many Ivy league courses and their professors seem to rely upon "less modern" material to educate their students with. I have never found those courses to give me leading edge education...just time tested and proven education. There are a few good professors out there though....but tough to get their class.
A trader might consider his/her labor as a cost.....how much labor does an investor have? These are factors to consider these 2 different styles with. The raw rate of return after labor would be more valid.
I am a specualtor full time and make my living from it. I use 15% of my capitol to specualte on the ES with. I have 6 months of liquid capitol in a money market account for family emergencies, quarterly tax payments and larger expenditures. These items are more labor intensive and require daily monitoring.
Now, these following items are less labor intensive and I do not make my living with. I have maxed out my IRA account yearly to prepare for retirement. I have a Vanguard GNMA account and other "fixed income funds" with Vanguard. My long term Stock market and Index fund holdings that I have allocated are in cash right now.
As you can see my perspective is from a Traders view point....and I find Investors usually hold full time jobs in their career and would rarely use a group such as Mr Market to invest their time and money in. They are more likely to use a much less labor intensive model.
I have yet to find what is UNIQUE to Mr. Market's methodology or specific stock picks that would offer an investor a reliable model to invest with.
Mr. Market introduced his methods like you could "make a living" from them....without a career....his boasting would not make me feel comfortable over the long term while LIVING with his picks.
Michael B.
I view investing as the underlying material
I view trading as Jewelry.
It's funny many fundamental traders are speaking publically about the market is becoming a shorter term trading market and buy and hold is gone in today's environment.
Mr. Market's returns based on what is sold only and I assume this 8% per year someone mentions is not considering his current situation. It also seems that Mr. Market goes long only....I do not know...I am not a follower of his group. I do know many Investors do not go short. The FACT that EVERY stock has experianced a SUSTAINED decline in price in the last 10 years once, might give a SUSTAINED drawdown for the "long side only" investor methodology. Now for years the Worden Brothers in TC 2000 never went short and did not suggest it to their suscribers. Now, I would never put Mr. Market in the same class as the Worden Brothers and never offer such a dis-respect to the Wordens. But they were not a Buy and Hold group. Mr Market uses fundamental analysis to Buy and Hold and publically discounts the use of Technical analysis. Where the Holdens used BOTH. Many Ivy league courses and their professors seem to rely upon "less modern" material to educate their students with. I have never found those courses to give me leading edge education...just time tested and proven education. There are a few good professors out there though....but tough to get their class.
A trader might consider his/her labor as a cost.....how much labor does an investor have? These are factors to consider these 2 different styles with. The raw rate of return after labor would be more valid.
I am a specualtor full time and make my living from it. I use 15% of my capitol to specualte on the ES with. I have 6 months of liquid capitol in a money market account for family emergencies, quarterly tax payments and larger expenditures. These items are more labor intensive and require daily monitoring.
Now, these following items are less labor intensive and I do not make my living with. I have maxed out my IRA account yearly to prepare for retirement. I have a Vanguard GNMA account and other "fixed income funds" with Vanguard. My long term Stock market and Index fund holdings that I have allocated are in cash right now.
As you can see my perspective is from a Traders view point....and I find Investors usually hold full time jobs in their career and would rarely use a group such as Mr Market to invest their time and money in. They are more likely to use a much less labor intensive model.
I have yet to find what is UNIQUE to Mr. Market's methodology or specific stock picks that would offer an investor a reliable model to invest with.
Mr. Market introduced his methods like you could "make a living" from them....without a career....his boasting would not make me feel comfortable over the long term while LIVING with his picks.
Michael B.
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