School of Hard Knocks 02 (Jan 10 - Jan 13)

[winston]

TOL:-

And the "experts" on TV are continuing to be upset about QE3.

A letter from a CNBC reader, " Why are your guests so upset about QE3 ? Are they short something ?".

[winston]

"No one lives long enough to learn everything they need to learn starting from scratch.

To be successful, we absolutely, positively have to find people who have already paid the price, to learn the things that we need to learn to achieve our goals."

-- Brian Tracy

[winston]

Are You An Emotional Investor?
Author: Zacks Investment Research

Here are some signs you are an emotional investor:

1. You’re holding onto a stock for reasons other than the fundamentals: i.e. the product is so awesome, the company must be too. See Krispy Kreme and other “hot” food and product brands.

2. You still own shares of the first stock you ever bought . . . at age 15.

3. You own shares in the company a relative worked at for decades (usually a father or grandfather) and are still loyal (even if you, yourself, never worked there.)

4. Everyone else owns the stock, so you want to own it too. See Microsoft in 1999 and Apple in 2012.

http://www.yolohub.com/trading/are-you- ... l-investor

[winston]

"A mistake only becomes a failure, when you repeat it."

- Maru

[winston]

"The most important things to know in life take a lifetime to learn.

Our first lessons come early -- but we grasp only the surface.

As we gain life experience we gain deeper understanding.

All great truths are both simple and complex, easy to understand yet difficult to master."

- Mark Ford

[winston]

TOL:-

Do you remember the 23% drop on the Dow back in Oct 19, 1987 ?

I thought we will be going into another Depression but luckily things rebounded.

The crash in 1987 was due to program trading.

And the problem has not really gone away. Nowadays, the risk has gone up a few folds with "HFT".

[iam802]

If you are bored and need something to read during the weekend..

--
How I Caused The 1987 Crash

http://www.businessinsider.com/how-i-ca ... sh-2012-10

[winston]

Lessons From Black Monday by Charles Rotblut

Today is the 25th anniversary of Black Monday. The Dow Jones industrial average lost more than 22% of its value on Monday, October, 19, 1987.

The losses were not just restricted to stocks either, as the futures market was roiled by traders who incorrectly bet on arbitrage strategies.

The events of that day are well documented, and there are many texts about previous panics and market crashes.

Developing an understanding of what happened and what factors compounded investors’ losses can help you better manage your portfolio in the future.

Here give some noteworthy observations about the 1987 crash that give lessons for today’s and future market environments:

http://pragcap.com/lessons-from-black-monday

[winston]

5 ‘Pickpocket Investments’ That Will Steal From Your Nest Egg

Be on your guard against these investments or it might cost you

By Jeff Reeves

http://investorplace.com/2012/10/5-pick ... /view-all/

[winston]

"Every mistake that I made - and we all make mistakes - came because I didn't take the time to get the facts. I didn't drive hard enough."

-- Charles Knight