STREET DOGS: One liners from Stefan Cheplick
Story stocks are the most fun, but also the most dangerous
From Stefan Cheplick: Story stocks are the most fun, but also the most dangerous. You need to develop your own method for screening and searching for stocks. One of the great mistakes is to allow yourself to just stumble across or into a stock pick. Don’t read the Wall Street Journal and think, "I should do that too!" If it’s in the Wall Street Journal, the move has already been made. Bears and pessimists are better at using social media than bulls and optimists. If someone says "p:e ratio" in their first few sentences while pitching a stock, don’t go near it. Your greatest trades are the losers you cut the fastest. Always remember that the major indices are weighted and sometimes just a few stocks can drive them higher or lower creating a "false" narrative. The best stocks [to consider] are those that have barely any following on social media and the internet. Holding cash is very underrated among stock market participants [and] really hard to do if you follow the markets every day...
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