Learn more about psychology with this collection
Identifying and eliminating unnecessary expenses
How to negotiate better deals
Understanding the importance of saving
Buying The Low
Human nature is a powerful force, but it deludes us to believe our gut instincts. When the price of an asset falls to a level where an investor or trader believes is a logical, reasonable, and rational low, they perceive the price as a bargain.
After an initial purchase, if the price continues to fall, our emotions cause a dangerous impulse. The little voice in our heads (ego) declares that the market is wrong. But it's never wrong.
The quest to buy the low in any market has everything to do with ego and little to do with making a profit.
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Example Of Selling At ATH
The annual chart of wood price has never traded over $493.50 per 1,000 board (1993 ATH) before 2017.
After falling to a low of $251.50 in early 2020 as the global pandemic gripped markets across all asset classes, the price took off on the u...
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35 reads
Suppressing Emotions are Harder Than You Think
Eliminating ego from all investment and trading decisions starts with ignoring the news, experts, and any inputs other than the herd behavior in markets.
Prices rise & fall to levels that many believe are not sustainable, following trends allows you to take advantage of the...
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38 reads
Selling At All Time High
Shorting an asset has the same ego dynamics. The market can take prices to levels on the up and downside that defy logic, reason, and rational analysis. There are many instances where prices rise to levels that make no sense.
Selling short and ignoring the power of the trend is dangerous an...
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Follow The Trend
Following trends requires a special skill, which is no skill at all. Ignore expert advice, the news, and any other exogenous forces. The only tool necessary is a simple chart that displays the path of least resistance of the price.
The process is entirely objective, ...
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42 reads
Vanity & Ego
Vanity is excessive pride in or admiration of one’s own abilities, appearance, or achievements. There is a fine line between vanity and ego. Ego is a person’s sense of self-esteem or self-importance.
Vanity may be the devil’s favorite sin, but ego can be a ...
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122 reads
Example Of Buying The Low
On April 20, 2020, in the crude oil futures, came to 0$. Who wouldn’t want to buy crude oil at zero? After all, what is the risk?
As the history shows, a purchase of the expiring futures contract at zero looked more than ugly at negative $40 per barrel, the April 20, 2020 low.
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Passionate about crypto Trading since 2015 M.Sc. Chemical engineering Soon Ph.D. Computer science
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Margin of Safety
This is a principle of investing wherein an investor purchases securities only when their market price is significantly below their intrinsic value.
The formula to determine the intrinsic value of something is:
Margin of Safety = Market Cap / Deep Value Barg...
Understanding Inverse ETFs
Many inverse ETFs utilize daily futures contracts to produce their returns. A futures contract is a contract to buy or sell an asset or security at a set time and price. Futures allow investors to make a bet on the direction o...
The technicality of buying a stock
Every stock has a bid price and an offer (or "ask") price. “You sell to the bid, and you buy from the ask.”
When you are buying a stock, you can use 2 different kinds of orders:
- market order: this order tells the broker to get you into the stock...
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