STREET DOGS: The trick is to survive!
The trick is not to be the hottest stock-picker, the winningest forecaster, or the developer of the neatest model
My findings suggest the odds are that an investor’s great ideas will lose money. As such, before you invest a cent into an investment idea, it is imperative to have a plan of action as to what you will do if you find yourself in a losing position. When losing, the successful investors I worked with planned to become either assassins or hunters. Assassins sold losing investments that fell by a certain percentage or that declined by any amount and showed no signs of recovery after a certain period of time. Hunters invested a lesser amount at the outset and with a plan of buying more shares if the price fell. Hunters were also unafraid to sell if it became clear that they had made a mistake. The bad investors didn’t have a plan and consequently turned into rabbits. When losing money, rabbits neither bought more shares nor sold their holdings. Once forming an initial perception, rabbits were achingly slow to change their opinion of a stock. — Lee Freeman-Shor The trick is not to be the ...
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