The Naked Truth
How many different ways can there be to write “buy gold”?
Before this decade is out it will hit our $2000 mark, and nobody will remember that we were one of the very first to call for it because there will be thousands of forecasts calling for much higher numbers by then… by the nation’s blue chip analysts no doubt.
More and more people will be right as the gold bull gets on. Ultimately, who was first won’t matter ‘tall. In this business, the saying goes; you’re only as good as you’re last trade. Hence, traders live and die by the margin, both literally as well as in the context of utility theory.
That also applies to newsletter writers, analysts, money managers, and gurus – a guru is one of the aforementioned that happens to get on a good roll. However, in this business, as almost any other, taking losses is an inevitable part of any successful trading program.
When I tell people that, specifically those that are new to the investment scene, I often get a blank stare. They don’t know whether to believe me.
I’ve heard countless “stories” about this or that person that has traded and never lost; but after 20 years in the industry I have yet to meet any single one of these gurus. Of the thousands of industry professionals and clients that I’d ever met or spoken with, not one has avoided taking losses. In fact, whole books have been written on the subject that the biggest key to trading is knowing to cut your losses. Just imagine how rich one could be if they profited from every single trade they ever made.
How many different ways can there be to write “buy gold”?
Before this decade is out it will hit our $2000 mark, and nobody will remember that we were one of the very first to call for it because there will be thousands of forecasts calling for much higher numbers by then… by the nation’s blue chip analysts no doubt.
More and more people will be right as the gold bull gets on. Ultimately, who was first won’t matter ‘tall. In this business, the saying goes; you’re only as good as you’re last trade. Hence, traders live and die by the margin, both literally as well as in the context of utility theory.
That also applies to newsletter writers, analysts, money managers, and gurus – a guru is one of the aforementioned that happens to get on a good roll. However, in this business, as almost any other, taking losses is an inevitable part of any successful trading program.
When I tell people that, specifically those that are new to the investment scene, I often get a blank stare. They don’t know whether to believe me.
I’ve heard countless “stories” about this or that person that has traded and never lost; but after 20 years in the industry I have yet to meet any single one of these gurus. Of the thousands of industry professionals and clients that I’d ever met or spoken with, not one has avoided taking losses. In fact, whole books have been written on the subject that the biggest key to trading is knowing to cut your losses. Just imagine how rich one could be if they profited from every single trade they ever made.
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