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As I'm learning more about the stock market, I realized it has some interesting things about it I wish had been compiled in a book. I learned these here and there so I thought it would be nice to put these together. It's a mix of trading + investing btw but I won't be adding anything about technical analysis. Anything you'd like to add?
-the gold and dollar are generally inversely correlated but it isn't always the case
-tech seems to be inversely correlated with value stocks and inflation
-the SPY generally tends to be inversely correlated with the VIX
-if a stock is doing well, you can look at the sector as a whole for other up and coming plays
-the news are generally priced in
-over the long-term, the SPY has gone up but when things are bearish it can seem a lot worse
-I heard this saying from a trader and I liked it a lot. He said that bulls take the stairs and bears take the window. It really helps keep things in perspective when everything seems to be in the red.
-sector rotations can and will happen
-anything can happen!
He said that bulls take the stairs and bears take the window.
No bulls and bears. There is a stock market history game called Chutes and Ladders or Snakes and Ladders. It illustrates how wealth is built gradually by climbing the ladders and how losses come quickly. In trading, you can get wiped out by getting on the ladder too late and being greedy or fearful of taking small losses, not realizing that you are on the right-hand side of the curve.
Gold actually responds well to negative real returns on cash instruments..that seems to be its highest correlation
Good to know. Thanks for pointing that out.
Quote:
Originally Posted by Yippeekayay
Right now it's stuck market.
Right. Another thing I learned, the markets can move up, down or sideways and being in cash is also a position.
Quote:
Originally Posted by lchoro
No bulls and bears. There is a stock market history game called Chutes and Ladders or Snakes and Ladders. It illustrates how wealth is built gradually by climbing the ladders and how losses come quickly. In trading, you can get wiped out by getting on the ladder too late and being greedy or fearful of taking small losses, not realizing that you are on the right-hand side of the curve.
Never heard of that game. I'll read more about it later.
Quote:
Originally Posted by Thatsright19
Follow your heart
Lol yeah because anybody who claims to know it all really doesn't know anything. The people who are most insightful are very humble because they know there's always going to be more to learn.
If I may paraphrase the OP without profanation, the accumulation of knowledge is helpful in building perspective, or to make one wittier at social-gatherings, but it is not actionable. Today I know more than I knew 30 years ago, but how to monetize that knowledge? In other words, being able to better discern what's under the proverbial hood, doesn't make one a better driver. Success seems to be more a result of fortitude and patience, than of having deep understanding.
October. This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August, and February.
October. This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August, and February.
-- Mark Twain
Excellent wisdom Hikernut, I love it! Here's another of my favorites:
"Don’t gamble! Take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don’t go up, don’t buy it."
Will had some great sounding thoughts but most of it was either wrong or nonsensical..
He said buy land , they are not making any more of it ..well battery park city here in Manhattan sits on land fill where the water once was
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