Funny, but after trading for more than 15 years, I still am capable of forgetting a cardinal rule: The paper you own, in the end, will be intertwined with the fate of the 30 year bond.
The Fed is trying to counteract a number of very poor policies coming from the executive and legislative branches,.. It's damn near impossible to overcome [those] headwinds.
Capital markets reward you for what you learn that other people have yet to ascertain.
In the short-term the stock market is a voting machine; in the long-run it acts as a weighing machine.
Reply to a question about his take on interest rate
If I am bullish, I neither buy on a reaction, nor wait for strength; I am already in. I turn bullish at the instant my buy stop is hit, and stay bullish until my sell stop is hit. Being bullish and not being long is illogical.
Fundamentalists figure things out and anticipate change. Trend followers join the trend of the moment. Fundamentalists try to solve their feelings. Trend followers join their feelings and observe them evolve and dis-solve.
The feelings we accept and enjoy rarely interfere with trading.
There are old traders and there are bold traders, but there are very few old, bold traders.
I would add that I consider myself and how I do things as a kind of system which, by definition, I always follow.
Systems trading is ultimately discretionary. The manager still has to decide how much risk to accept, which markets to play, and how aggressively to increase and decrease the trading base as a function of equity change.
Trying to trade during a losing streak is emotionally devastating. Trying to play "catch up" is lethal.
The elements of good trading are: 1, cutting losses. 2, cutting losses. And 3, cutting losses. If you can follow these three rules, you may have a chance.
Losing a position is aggravating, whereas losing your nerve is devastating.
The markets are the same now as they were five to ten years ago because they keep changing - just like they did then.