What I Learned Losing A Million Dollars
Participating in markets is not about being right or wrong, nor is it about defeat; it’s about making decisions.
Brendan Moynihan • What I Learned Losing A Million Dollars
only paid attention to the opinions and the news that confirmed my position in the market.
Brendan Moynihan • What I Learned Losing A Million Dollars
This means entry and exit points are derived after you have done your analysis.
Brendan Moynihan • What I Learned Losing A Million Dollars
Thought-based decisions are deductive while emotion-based are inductive. Inductive puts acting before thinking, establishing a market position and then doing the work, selectively emphasizing the supporting evidence and ignoring the nonsupporting evidence.
Brendan Moynihan • What I Learned Losing A Million Dollars
That’s what rules do; they implement your analysis. Rules are hard-and-fast. Tools (i.e., methods of analysis) have some flexibility in how they are used. Fools have neither rules nor tools. You must develop parameters that will define opportunities and determine how and when you will act.
Brendan Moynihan • What I Learned Losing A Million Dollars
controls should be consistent with the strategy, not that they should be selected after the strategy is implemented.
Brendan Moynihan • What I Learned Losing A Million Dollars
Without a plan, you fall into one of two categories: a bettor, if your main concern in being right, or a gambler, if your main concern is entertainment.
Brendan Moynihan • What I Learned Losing A Million Dollars
One of the most incomprehensible features of a crowd is the tenacity with which the members adhere to erroneous assumptions despite mounting evidence to challenge them.
Brendan Moynihan • What I Learned Losing A Million Dollars
Trying to avoid taking losses altogether is the loser’s curse. But the losses you are trying to avoid are the ones for which you hadn’t made allowances, the ones that sneak up on you and the ones that ultimately put you out of business.