Sublime

Then one day the entire market became quite weak and prices of all stocks began to fall. When I had a profit of at least four points in each and every one of the twelve stocks that I was short of, I knew that I was right. The tape told me it was now safe to be bearish, so I promptly doubled up.

If somebody had told me my method would not work I nevertheless would have tried it out to make sure for myself, for when I am wrong only one thing convinces me of it, and that is, to lose money. And I am only right when I make money. That is speculating.

I had an idea that, since the Dow Index over the last 30 years had risen from 3,300 to nearly 36,000, you could expect more positive closing prices than negative closing prices. I was wrong in that assumption. Over the last 30 years only 50.4% of all closing prices were higher than the previous day’s closing price. This means the distribution of pl

As he listens, he keeps pondering the same underlying questions: “What am I missing? Who’s doing something that no one else is doing? How can I get better?” His aim is never to replicate other investors’ behavior. “You can’t mimic them because you’re not them,” he says. “Learn it and adapt it and modify it into your own process.”

substantial drop.”

Identify your profile as investor / day trader / swing trader, short term trader.

And the losers? They risk way too much. They don’t have a methodology. They chase markets. They have a fear of missing out. They can’t keep their emotions in check; they have wild swings between excitement and depression.

so. The end of the bull market had not come, though it was within hailing distance. Pending its arrival there was still bull money to be made. Such being the case, I merely turned bearish on the stocks which had stopped advancing and as the rest of the market had rising power behind it I both bought and sold.

Warren didn’t mind substantial variations in market prices over months or even a few years because he believed that in the long run the market would be up strongly and by regularly beating it during its fluctuations his wealth would grow over time much faster than the overall market.