Worst Wall Street Clichés

I can't believe none of you guys have already put down what has to be the biggest cliches' of the past 3-5 years...
"I'm a contrarian"
"Go against the herd"
"The majority is always wrong"

The funny thing is that sentiment doesn't move markets...actions do. Markets move up and down based on money flowing into or out of the particular market. Regardless to what the crowd sentiment is, regardless to what your bias is...if you are on the wrong side of the order flow you will lose money. The key to success in the trading business is recognizing when you are on the wrong side of order flow and get off of it ASAP. In this business as in every other aspect of life...money talks.
 
"Never let a profit turn into a loss." So that means what? You're supposed to liquidate your position the moment you have one tick profit? Dumb. If you want to make real money, sometimes profits turn into losses. They don't have to be big losses, but losses are part of the game.

My other favorite is when the market analysts on the post-market wrap make up a story out of thin air to explain what's going on. They clearly don't have a clue and are just spinning a tall tale hoping the clueless Joes watching will take the bait.
 
People coming up with reasons why the market was up or down on the day after the fact.

Not really cliche per se, but a regular occurrence on CNBC:

Somewhere near the close, Maria B will ask an analyst why the dow is down 10 points on the day. The analyst will make up an answer.

The dow will go positive by 5 points, and Maria will ask the analyst why there was a sudden uptick in the dow toward the close. The analyst will make up an answer.
 
Quote from JustDoingIt:

I can't believe none of you guys have already put down what has to be the biggest cliches' of the past 3-5 years...
"I'm a contrarian"
"Go against the herd"
"The majority is always wrong"
More...

Dead Cat Bounce

Put some lipstick on this pig and sell it

Different dog, same fleas
 
and then the morons at cnbc try to bring back the term "whisper number " ...what a bunch of perma bull wanna be's . That phrase went out with the roaring 90's...leave it alone perma bulls and just report the news unbiased for a change
 
By the same token:

BUY THE RUMOR, SELL THE DAMN NEWS!

(And you can't help but wonder who makes up these rumors.)
 
Quote from focusonmoney:

The market is always right.. If you go against the market you will always lose.. So what does that tell you?

And the smart money does run the show.. You are confusing hedge funds for the smart money.. They are not the smart money..
More...


I think he meant the banks .

The only smart money out there was GS.
 
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