Author Trade Like A Stock Market Wizard and Think & Trade Like a Champion. Featured in Stock Market Wizard by Jack Schwager. Before following read disclosure.
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On a more fun note, I had a great time racing with NASA SE this weekend at one of the most awesome road courses in the world—Road Atlanta.
A big thank you to all the participants, my team members, and the fans who came out and helped make the weekend so memorable.
And yes... that's me in the Castrol car heading through Turn 7. 😎🏁
On a more fun note, I had a great time racing with NASA SE this weekend at one of the most awesome road courses in the world—Road Atlanta.
A big thank you to all the participants, my team members, and the fans who came out and helped make the weekend so memorable.
And yes... that's me in the Castrol car heading through Turn 7. 😎🏁
Look everyone... don't ever be concerned with my positions; be concerned with the risk you are taking.
I've been trading for 43 years and have had only a few single-digit drawdown years. All of my trades are made from very low-risk entry points and always with a hard stop loss in place.
I could turn out to be wrong and the market may have already made its low. If so, I'll get stopped out. That's the business.
I'm wrong just as often as I'm right. The difference is that my risk is always defined and controlled. What matters is not being right all the time; what matters is that the risk taken relative to the potential reward, adjusted for batting average, is managed in a way that produces a profitable outcome over a large sample of trades.
That's how I've approached the market throughout my entire career, and it's no different today. The distribution of gains and losses over time forms a profitable bell curve because risk always comes first, and risk is always managed in relation to reward.
@BrianFeroldi Finding a multibagger is hard. Holding one after it doubles is apparently impossible. 😄
Solution inspired by @markminervini 's partial-profit approach:
Keep Half. Sell Half.
📈 If it goes up: "Glad I kept half."
📉 If it goes down: "Glad I sold half."
Look everyone... don't ever be concerned with my positions; be concerned with the risk you are taking.
I've been trading for 43 years and have had only a few single-digit drawdown years. All of my trades are made from very low-risk entry points and always with a hard stop loss in place.
I could turn out to be wrong and the market may have already made its low. If so, I'll get stopped out. That's the business.
I'm wrong just as often as I'm right. The difference is that my risk is always defined and controlled. What matters is not being right all the time; what matters is that the risk taken relative to the potential reward, adjusted for batting average, is managed in a way that produces a profitable outcome over a large sample of trades.
That's how I've approached the market throughout my entire career, and it's no different today. The distribution of gains and losses over time forms a profitable bell curve because risk always comes first, and risk is always managed in relation to reward.
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As the market opens higher this morning, it's important to remain disciplined and avoid chasing an early rally—especially following a significant down day and a weak close on Friday.
One of the most common mistakes investors make is assuming that the first bounce marks the start of a sustainable advance. In many cases, the initial rally is simply an oversold reaction or what traders refer to as a "dead cat bounce."
Historically, after a sharp decline, I prefer to give the market time—often until midweek or even the end of the week—to see whether buyers are truly stepping in with conviction. Very often, after the first reaction higher, the market resumes its downtrend, undercuts the recent lows, and additional damage occurs.
Patience and selectivity are critical. Let the market reveal its true character before becoming overly aggressive. Focus on preserving capital, managing risk, and allowing the price action to confirm whether the move is the beginning of something meaningful or merely a temporary bounce within a larger decline. https://t.co/JXzFFTmMtn
The way I achieved my success and my dreams was. I started with a vision and then spent my life moving a tiny bit in that direction without ever squandering one single day.