Caveat Emptor

Reblogged from https://theirrelevantinvestor.com/2017/07/14/ten-rules-for-catching-a-bottom/ Ten Rules For Catching A Bottom Posted July 14, 2017 by  Michael Batnick I’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  ca...

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 ...