July 26, 2011 – Chicken Nuggets of Wisdom

Best Lines I’ve Read/ A Series of Useful Links:
1.) It’s not valuation that matters.  It’s risk and reward in the growth cycle of each company.   – Leigh Drogen “The Coming Tech Crash”
2.)  Most importantly for the upside of the market, no one owns stocks.
There are millions of traders flipping stock with institutions in high growth names, but there are no rational conversations about the growth opportunities.
3.)  The media latches on to Steve Jobs not distributing the cash and thank god he laughs in their faces. Why should he trust the public with that cash. The public has proven to be imbeciles.
4.) Err on side of caution, hit the gas when deemed apropos, and don’t paradiddle. – A comment to Chessnwine’s post , “You call yourself a trader, you sonofabitch”
5.) Nietzsche was right- what doesn’t kill you makes you stronger.  – Pension Pulse, “Put Yourself First
6.) “You’ve got to have the passion to do your time. If you haven’t done the time, you just can’t get there.” He goes on to argue that only by paying one’s dues through time, effort, devotion, and experience can we, “develop the rich experiences that make life meaningful.” – Top 10 Things That Determine Happiness
7.)Economists who adhere to rational-expectations models of the world will never admit it, but a lot of what happens in markets is driven by pure stupidity  or, rather, inattention, misinformation about fundamentals, and an exaggerated focus on currently circulating stories. – Robert Schiller, via Stone Street Advisors ” Driven by Stupidity
8.) No company gets to be worth twice as much in 60 days as it was before to any intelligent person, so when that happens, we take advantage of it. – Steve Wynn , via Stone Street Advisors ” Driven by Stupidity
9.) Keep in mind that you dont have to be sending orders to be working.  Avoid nurturing the belief that nonparticipation is not working.  This leads to overtrading or compulsion which is the practice of poor risk management.
10.) A series of loses first eats into your account balance, and then begins to eat into what is most important of all: your confidence.  Trade with confidence or don’t trade at all.  If you cant take the heat, stay out of the kitchen.

Hope you enjoy the articles, lines and links as much as I did,

– The Faceless Trader

(P.S. – for 9 & 10, I seriously don’t know the author, I just read a photocopy of it, when I do know who said the things, I’ll try to update.)

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