The sector and industry in which a stock is categorized ultimately determines one-third of an individual stock’s performance. – William J. O’Neill, Founder of the Investor’s Business Daily
As goes January, so goes the year. – The January Effect, Long-held Wall Street “rule”
Patterns [in charts] do fail and this is something we need to learn to manage in trading through technical analysis. – Lance Beggs, Your Trading Coach
Try to stay focused on what the market is doing rather than speculating on why. Act on the price and volume action. – Paul Whitfield, Investor’s Business Daily, 22 Feb 2013
The psychology of stalking stocks: Look for Fractional R Losses, Multiple R wins, plenty of opportunities, monitoring your psychological state, know the signs and know how to manage them, monitor and manage your risk, trade with stocks with which you have familiarity (make them your old reliables) – Ken Long http://www.youtube.com/watch?v=ct8BvDdnguA
Unconscious Thought Theory suggests the unconscious mind is capable of performing tasks outside of one’s awareness, and that unconscious thought is better at solving complex tasks, where many variables are considered, than conscious thought, but is outperformed by conscious thought in tasks with fewer variables.
Use your conscious mind to acquire all the information you need for making a decision. But don’t try to analyze the information with your conscious mind. Instead, go on holiday while your unconscious mind digests it. Whatever your intuition then tells you is almost certainly going to be the best choice.”
If the decision doesn’t matter all that much, the prefrontal cortex should take the time to carefully assess and analyze the options. It might sound ridiculous but it makes scientific sense: Think less about those items that you care a lot about. Don’t be afraid to let your emotions choose.
Instead of employing statistical thinking towards market decisions, the general public keeps investing based on “impulsive feelings”, letting an assortment of emotional biases rule their lives. – The Complete Turtle Trader, p.xv
The average newbie investor will never see their own slaughter coming, even though their own slaughter is never different from past ones. – The Complete Turtle Trader, p.xv