LOOKING BACK: One major day-trading tenet is to look back at each trade & learn from both your successes & mistakes. This rule should apply to investing, speculating, everything. So let me do so today.
Schwartz Lesson & a New SCHWARTZ RULE:
“When you find a solid, working theme, stay with it!”
This is a rule put forth in both of Jack Schwager’s books if I recall correctly, in both The Market Wizards and The New Market Wizards. One wizard trader in particular was an expert on staying with a trend, like a “dog with a bone.” And I must say I’ve seen first hand staying with trends work very well over the last few years. Maybe after writing today’s piece and seeing for myself the incredible results out of my fertilizer recommendations, I’ll learn to not be so flighty and thus stay with multiyear trends much longer in the future, like the REITs trend I identified early on in its big multiyear move up which ran from the beginning of 2000 to the beginning of 2007, like today’s ongoing commodities bull market and the still running and hot alternative, clean green, wind, solar trend. Yep, when we unearth a new trend with strong underlying economic fundamentals (macro economic trends which don’t change for years) we gotta milk it for all its worth. “Are you listening Schwartz?” You better be!
05-15-2008 9:27 AM
Filed under: Principles of the Stock Market, Richard Schwartz, Clean Energy, Green Energy, Commodities, Investing Strategies, Green Investing, Alternative Energy, Soft Commodities, Macroeconomics, Commodity Bull Market, Portfolio Strategy, Schwartz Rules, Perspective, Investment Themes, Trading Rules, Agricultural Commodities, Trends, Day-Trading, Stock Market Lessons, AG