Life evolves. We all change, for better or for worse. What was true yesterday may not be true tomorrow.
I have tried many things in the world of finance and in life and the effort is to take the best possible course of action. It works for me. Accordingly, the trading philosophy going forward will be that of a "Relaxed Investor" It does not mean "buy and hold". It means to be less reactive.
Keep in mind the wise words of Lucien Hooper, a Wall Street legend: “What always impresses me,” he wrote,“is how much better the relaxed, long-term owners of stock do with their portfolios than the traders do with their switching of inventory. The relaxed investor is usually better informed and more understanding of essential values; he is more patient and less emotional; he pays smaller capital gains taxes; he does not incur unnecessary brokerage commissions; and he avoids behaving like Cassius by ‘thinking too much.’”
Some of the older themes remains the same or are integrated with Relaxed Investor.
I have tried many things in the world of finance and in life and the effort is to take the best possible course of action. It works for me. Accordingly, the trading philosophy going forward will be that of a "Relaxed Investor" It does not mean "buy and hold". It means to be less reactive.
Keep in mind the wise words of Lucien Hooper, a Wall Street legend: “What always impresses me,” he wrote,“is how much better the relaxed, long-term owners of stock do with their portfolios than the traders do with their switching of inventory. The relaxed investor is usually better informed and more understanding of essential values; he is more patient and less emotional; he pays smaller capital gains taxes; he does not incur unnecessary brokerage commissions; and he avoids behaving like Cassius by ‘thinking too much.’”
Some of the older themes remains the same or are integrated with Relaxed Investor.
- I am neither a Bull nor a Bear.
- Day Trading is like sitting on a rocking chair. It keeps you occupied, but does not take you anywhere.
- Buy and hold investment principal is dead but so is jumping in and out at short notice.
- Opportunities arise on both sides, long and short.
- All trades should have a positive risk reward ratio.
- Priority is preservation of capital.
- Trading opportunities are infinite, trading capital is not.
- It would be foolish to even try to perfectly time trades. Take the money and run. Leave some for the next guy.
I want to add the sixteen rules of Sir John Templeton:
Interesting set of rules from legendary investor John Templeton:
1. Invest for maximum total real return
2. Invest — Don’t trade or speculate
3. Remain flexible and open minded about types of investment
4. Buy Low
5. When buying stocks, search for bargains among quality stocks.
6. Buy value, not market trends or the economic outlook
7. Diversify. In stocks and bonds, as in much else, there is safety in numbers
8. Do your homework or hire wise experts to help you
9. Aggressively monitor your investments
10. Don’t Panic
11. Learn from your mistakes
12. Begin with a Prayer
13. Outperforming the market is a difficult task
14. An investor who has all the answers doesn’t even understand all the questions
15. There’s no free lunch
16. Do not be fearful or negative too often
So let us be relaxed like a Zen and achieve optimum results.
You are welcome to send your thoughts.
