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Bottom fishing

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Reblogged from
https://theirrelevantinvestor.com/2017/07/14/ten-rules-for-catching-a-bottom/Ten Rules For Catching A BottomPosted July 14, 2017 by Michael BatnickI’ve never met a new investor who was a trend follower. That’s because we were taught to buy low and sell high before we were old enough to open a brokerage account. So when we come of age, we go hunting for bargains. But we quickly discover this is harder than it sounds.Nobody can actually buy low and sell high. Not consistently anyway. Successful traders typically buy high and sell higher, and successful investors buy low and sell rarely. But if you are tempted to catch bottoms, to be the investor who can recognize treasure where others find trash, there are some broad rules that I suggest you follow.The obvious area of the market that falls in the pile of “other’s trash” these days are retailers. A group of 54 of these names that Bespoke calls the “Death By Amazon” Index is down 20% this year and is at its lowest levels s…

Financial Markets vs Dating Market

Sources
http://sillyinvestor.blogspot.sg/2017/10/random-thoughts-some-uses-of-mental.html
https://www.channelnewsasia.com/news/singapore/fewer-marriages-more-divorces-in-2016-singstat-9040550
http://www.berkshirehathaway.com/2016ar/2016ar.pdf
https://en.wikipedia.org/wiki/Marriage_vows
https://en.wikipedia.org/wiki/Confirmation_bias
https://en.wikipedia.org/wiki/Illusion_of_control
https://en.wikipedia.org/wiki/Anchoring
https://en.wikipedia.org/wiki/Loss_aversion


Chasing the dream
Dream girl vs dream stock
Humans are programmed with genetic shortcuts that set them up for success in the dating market, but failure in the financial markets. Behavioural bias.

1) Confirmation bias - You believe in only information that supports your view and ignore the others

Chasing a girl vs chasing a stock. Women can be very complicated. As a single guy I get a lot of relationship advice. When she say no you think she say yes. Perseverance is the key to success.

When the fundamentals of the company dete…