Tuesday, June 28, 2011

CMG's 3rd Century Mark : Livermore Edition


'Ol J.L. would probably have something really clever & snappy to say about CMG and it's attack on the 300 level today. Unfortunately he's not around to speak on it, but I did get this interesting note with my burrito bowl tonight.


Profile of Market Leader : CMG - weekly chart
http://screencast.com/t/UYcEAhMNZL

Daily volume on this break of 300 was acceptable. Had it been closer to 300 prior to the start of the day the move through 300 would've been stronger I think. Time will tell if CMG wants to exist above 300. Be quick to act if this level doesn't hold. And also note a very sharp rise up and out of the ascending upper trend line may trigger a sell signal. So best you be on your toes!

Sunday, June 5, 2011

Pride : Never Argue With The Market

"I never try to predict or anticipate. I only try to react to what the market is telling me by its
behavior."

"Losing money is the least of my troubles. A loss never troubles me after I take it. I forget it
overnight. But being wrong – not taking the loss – that is what does the damage to the pocket book
and to the soul."

"There is only one side of the market and it is not the bull side or the bear side, but the right side."

"…the market will often go contrary to what speculators have predicted. At these times, successful
speculators must abandon their predictions and follow the action of the market. Prudent
speculators never argue with the tape. Markets are never wrong, but opinions often are."

"Markets are never wrong, opinions are."

"A prudent speculator never argues with the tape."


- Jesse Livermore




Pride : Never argue with the market.


Enemy Of The Speculator : Uncontrolled Basic Emotions

"I believe that uncontrolled basic emotions are the true and deadly enemy of the speculator;
that hope, fear, and greed are always present, sitting on the edge of the psyche, waiting on
the sidelines, waiting to jump into the action, plow into the game."

"Greed, fear, impatience, and hope will all fight for mental dominance over the speculator."

"The speculator’s deadly enemies are: Ignorance, greed, fear and hope. All the statue books in the
world and all the rule books on all the Exchanges of the earth cannot eliminate these from the
human animal."

"Fear keeps you from making as much money as you ought to."

- Jesse Livermore


More on Fear & Greed from MarketSmith's W. Scott O'neil.






Saturday, June 4, 2011

The Unsuccessful Investor Is Best Friends With Hope

"The unsuccessful investor is best friends with hope, and hope skips along life’s path hand in hand
with greed when it comes to the stock market. Once a stock trade is entered, hope springs to life. It
is human nature to be positive, to hope for the best. Hope is an important survival technique. But
hope, like its stock market cousin’s ignorance, greed, and fear, distorts reason. See the stock
market only deals in facts, in reality, in reason, and the stock market is never wrong. Traders are
wrong. Like the spinning of a roulette wheel, the little black ball tells the final outcome, not greed,
fear or hope. The result is objective and final, with no appeal."

"When the market goes against you, you hope that every day will be the last day - and you
lose more than you should had you not listened to hope. And when the market goes your
way, you become fearful that the next day will take away your profit and you get out - too
soon. The successful trader has to fight these two deep-seated instincts."

- Jesse Livermore

W. Scott O'neil (son of William J. O'neil) goes over the investing pyschology of Hope and it's perils.