SpreZZaturian
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Före detta hedgefondförvaltare, partner och VD på Futuris som utsågs till Årtiondets hedgefond i Europa för perioden 2000-2009
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Top Ten Reasons You Are A Stock Market Newbie

Summary: Just avoid everything in this 2-minute article and you'll be okay

New here? Check out this starting page, and remember to sign up for my weekly-ish newsletter and free eBook

 

Friday Fun - 10 signs you should not be allowed anywhere near your own money

IMG_20141110_142335

 

 

10: You celebrate high prices, despite not being fully invested or at all close to net selling for retirement/consumption, and detest low prices (investment opportunities) under the same circumstances

stock market moron

 

9: You welcome every acquisition your holdings make, while ignoring historical facts about value destructive take-overs, re-alignment costs, incompatibility etc.

If acquisitions are as good as printing money why don't you do one yourself?

market moron

 

8: You listen to company management and brokers. You base your positive feelings for a stock on broker comments and descriptive company comments, as if they had any reason whatsover to be anything but über bullish.

"We had a great quarter"

"The company says it had a good quarter and we agree. You should buy some more"

investor imbecil

 

7: You always take positive qualitative statements at (at least) face value, but exclude negative reported and audited facts and numbers as one-offs or plain irrelevant.

"But, the company said 7 orders was a good number"

20120419-1345 Omar

 

6: You fail to imagine the range of probable outcomes and focus only on the average (or blue-sky scenario)

range anxiety

 

5: You talk about single year key ratios (as if next year's P/E ratio meant something, and as if you understood their implications and demands on the future 25-50 years)

key ratio killers

 

4: You scream of joy when one investor buys shares from another in "your" company (in a bull market everybody buys, you should focus on why the incumbent/informed seller sells in a bull market)

Why does the most informed owner sell in a bull market?

dog moustache

 

3: You use the present tense (implying you know the next move" when describing price changes: "prices are moving up/down", rather than past tense "prices have moved up/down"

market newbie late to the game

 

2: You think "a positive story" is all a stock needs to claim a higher price, irrespective of its starting price.

"But, but, but, solar energy is the future",

"But, but, but 3D printing... everything will be made through additive processes",

"But, but, but biometrics is the future"

The butt of the joke is you

butt of the joke

 

AND THE NUMBER ONE PROOF YOU ARE A STOCK MARKET IMBECIL...

1. You think you are a long-term fundamental investor (when in fact you only follow trends and tips), and downturn dynamics don't apply to you

nr one reason market newbie
 

BONUS FOR ABSOLUTE INVESTOR MORONS:

You use leverage, despite being a certified stock market crash test dummy

failure is an option money isnt everything

You apply quantum mechanics principles; you think a stock will appreciate because you are looking at it, because you are reading its news

dancing in the dark

You've never experienced a market crash, despite a third one in just 15 years is in the making as we speak

60544_10152212301851471_9115413423239625875_n

Closing words: Yes, I think we have the stock market peak behind us. Yes, I am personally basically 100% short the Swedish stock market. Yes, I plan to accumulate long positions in select stocks all the way down as soon as they become reasonably priced (some already are, but probably will go even lower anyway). Yes, I own a fair bit of gold too. No, I don't have any oil currently, but I'm looking to buy on dips.

Don't try this (copying me) at home. Disclaimer.

 
Taggar (blogg): 
Bluewater's picture
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Bluewater

Oh, så ont det gjorde just nu ;-)

Funderar noga över innehav över helgen och veckan so kommer 

Trevlig helg !

Investerarfysikern's picture
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Investerarfysikern

Bra inlägg och fina bilder! Lätt att man dras med av bull - hysterin och kortsiktighet

SpreZZaturian's picture
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SpreZZaturian

Ja, över tiden samlar man på sig en del bilder i kul situationer. Det är lika bra att se till att de används :)

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