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Posts Tagged ‘traders’

What You Can Learn From Famous Investors

June 16th, 2010


Finding a path is easier than making your own sometimes.

You can lose direction. You can run into unforeseen obstacles. You can lose interest. Or, you can just get tired.

Investors and traders are lucky because there have been trailblazers in the investment world for more than a hundred years. Some of them are less well known than others. Their success has also been well-documented.

Some of the stories are actually reverse-lessons. You should do the opposite of what these legends of stock market success did. Especially after they earned their money.

Here are a few famous investors listed at My SMP–and how they arrived at their fortunes.

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What’s the Difference Between an Investor and a Trader?

May 27th, 2010

When I write, I often think that the world of finance is divided into two camps. (Maybe three.)

There are investors and traders. (I also think the latter category can be divided into another camp of “speculators.”)

Are these actually different and distinct groups?

I’ll list some of the key differences between investors and traders. But then I’d like to see if, just like Donnie and Marie were a little bit country and a little bit rock and roll, that we might be a little bit of each group.

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Will Automated Trading Turn Me Into An Idiot?

August 6th, 2009

imwithstupid

We talked yesterday about traders fearing that Automated Trading will turn them into lazy slobs. The fear, I think, is unfounded.

Another fear real traders have is that Automated Trading will turn them into idiots. By relying on technology to complete their trades, they’ll lose their knack for picking winners. Or so the thinking goes. Maybe they’re afraid the instincts that they have honed over years in the market tranches will fade. Or, some of this knowledge will just disappear.

If you don’t use it, you’ll lose it.

I believe this fear is completely ungrounded. If the Automated Trading system or systems are use correctly, they can be study aids for the trader. And, at the very least give the trader time to study and implement his or her own position moves.

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Automated Trading and Economic Recovery

July 15th, 2009

Some people think that the economic turmoil is just beginning. Others think that the worst is behind us, the government stimulus worked, and we are on the way to recovery. No one can predict with certainty which way the economy goes, but we need to prepare ourselves to succeed financially, regardless of what happens.

How can we do that?

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Why Automated Trading And Manual Trading Are Compatible

June 24th, 2009
Jenny Downing-Creative Commons

Jenny Downing-Creative Commons

As we develop Automated Trading systems, one of the criticisms I hear frequently is: “Automated Trading will never replace traditional human trading.”

To which I respond, “We’re not trying to replace human trading.”

Trading is more than a way to make money. A lot of people enjoy it, just like people like riding bulls, putting together jigsaw puzzles, playing contact sports, strumming the guitar, and a gazillion other ways to work, play, and create.

Automated Trading can actually augment a traders’ activity. Here’s how:

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Trading Success Secrets: Overdosing on Opinions

June 11th, 2009

What’s the one thing that’s free, found in ready abundance, doesn’t need to be mined or manufactured, and is happily lent and offered?

An opinion.

Opinions are omnipresent for traders. You can check out CNBC and Fox Business. You can read the Investor’s Business Daily or check out the Wall Street Journal.

Then there’s blogs… I write that hypocritically.

Being connected to so much information and opinion is a good thing, right? It’s part of the whole Singularity where everything will be composed of information, right?

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Automated Trading and the Singularity

June 8th, 2009

What is an Automated Trading system?

An Automated Trading system is a computer program that buys and sells stocks or other assets without human interference. It’s like taking a stock broker and replacing them with a computer. These systems can detect patters in the markets, and then buy and sell assets to make money.

What is the singularity?

computers-and-accelerating-technologyEveryone knows that technology is getting faster and faster, and our world is changing at an ever increasing rate. The Internet has only been around for 14 years, but has already been reborn (Web 2.0) and completely revolutionized many industries. It’s easy to think of many examples of technology that are rapidly changing the world: cell phones, computers, medicine and robotics are just a few.

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Accelerating Technology, Automated Trading, Dreams Come True, Internet, Investing, Money, Online Investing AI , , , , , , , , ,

Automated Trading’s Hidden Agenda

May 21st, 2009
Save time for strange days with Automated Trading.

Save time for strange days with Automated Trading.

Dan Brown has made a fortune exploring the hidden agendas of church and state in his books The Da Vinci Code and Angels and Demons.

Oliver Stone’s been portrayed as one of those hidden agenda-seekers, acknowledging the roles of the FBI, the CIA, the Mob, anti-Castro Cubans, pro-Castro Cubans, and participants in the military-industrial complex in the assassination of John F. Kennedy. He also insinuated that a half-naked native had a role in writing songs for sixties rock band, the Doors, even though it was more than likely Robby Krieger.

As part of the development team charged with creating Automated Trading systems, I am now in possession of information that reveals the hidden–and shocking–agenda of Automated Trading.

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Accelerating Technology, Automated Trading, Business Strategy, Dreams Come True, Investing, Money, Online Investing AI, Success, US Economy , , , , , ,

Rules For Revolution: Love Hurts (Your Portfolio)

April 23rd, 2009

LoyaltyDon’t do as I do. Do as I say. Because, fair disclosure: I am a loyal, buy-and-hold stockholder in several companies.

You are loyal at your own peril in the market, and God knows, especially in this market.

I bought Johnson Controls, for example, as one of my dividend-producing stocks about ten years ago because I liked the ever-increasing dividends and, to be honest, liked the company, for some reason. I still own the stock, even as its worth plummeted. And, to be honest, I will continue to plow my re-invested dividends into the stock.

Am I an idiot? Well, the point is certainly arguable. But I think I suffer from another acute and potentially financially fatal condition.

I’m human. I have pride and love, hate and fear, just like everyone else and while it certainly makes life more interesting, it makes my ability to trade and invest even more interesting.

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Automated Trading, Online Investing AI , , , , , , ,

Lie: It Takes Too Much Time And Effort To Manage A Portfolio

April 2nd, 2009

A good portion of independent investors are drawn to trading and the market, in general, because they enjoy it. It’s a hobby for many.

But, a vast group of potential investors are left on the doorstep of financial freedom because they believe that it takes special skills and a whole lot of time and effort to become a “trader.” They may invest in a few stocks, but rumors that they will be forced to spend hours locked away with a copy of Value Line and research earnings reports keeps them from actively trading and investing.

With a full-time job and family commitments, time is a commodity they can’t trade.

So, they need someone else to mind their money, they decide.

The financial industry reinforces this stereotype, making it clear that only financial analysts with 120-hour work weeks can understand the market.

But is this true?

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