A quick survey of the Amazon website lists over a dozen books written by Jack Schwager, but that is not what impresses me the most. What I find worthy for some sort of listing in the Guiness Book of World Records is that in writing these volumes, he has gained access to the very secretive circle of world-class traders and gotten them to open up to him. Jack Schwager is an interviewer extraordinaire and a trader himself. As such, he’s managed to get into the minds of the most exceptionally profitable investors in the world, and he’s asked the questions we professional traders want asked. Marvelous stuff.
I was fortunate to hear Jack speak recently to a group of insiders at the International Federation of Technical Analysts in San Francisco. It was a fascinating ride as he shared his knowledge of the jungle and described the proverbial “Swiss Army knife” that is successful investing.
Continue reading "Mr. Market Wizard: Jack Schwager Speaks Part I" »
To the over 500 investors who are presently using my ChartPack, I’ve been sincerely humbled by your many emails and wonderful personal comments. When you are happy, making money and saving time, I’m happy too! My objective is to help you step up your investing another tier with over 60 upgrades within Version 2.0.
(Instructions for installing the upgrade are at the bottom of this article.)
To those who have not yet downloaded the ChartPack, I’d like to invite you to read the introductory blog that describes each of the chartlists from Version 1.0 as well as the overall structure and trading methodology behind the Tensile Trading ChartPack.
Continue reading "Tensile Trading ChartPack v2.0: 60 Upgrades to Help You Invest Smarter with Less Effort " »
We investors are imperfect creatures living in a complex world. We are destined to stumble and fall. It’s part and parcel of the probability game that is the stock market. One day in the near future, you will find yourself here amongst “the investing losers”, just as surely as any exceptional salesperson whose potential customer refuses his or invitation to buy. Be comforted in the knowledge that when you land here, you will not arrive alone. Other “investing losers” will be there with you – old and new friends as well.
This isn’t the end. You’ll just need to brush yourself off, put the bad trade completely behind you (after first siphoning off the key insights you just learned) and know that probabilities dictate you are now one step closer to your next big winning trade. What you don’t do is ignore potential lessons just learned and simply kick the can down the road. You don’t allow all those negative ions to jump all over you and drown you like a tsunami. This is where you need to get vaccinated with a little personalized truth serum and answer the question: what will I do differently next time?
Continue reading "We Investors Lose At Times: You Are Not Alone" »
When Google’s co-founder, Larry Page, famously asked Steve Jobs for advice, Job’s reply was “Don’t get distracted. Focus.” From what I’ve seen with hundreds of investors, this is possibly the number one reason institutional investment managers outperform individual investors. The power of disciplined focus cannot be underestimated. Investment firms codify it. Institutional managers follow the program or they get fired. That’s pretty good motivation to stay focused. How can individual investors do likewise?
It’s not really about brains. Many smart individual investors know exactly what they need to do, but their Achilles heel seems to be that they lack the ongoing, consistent discipline to focus on their positions.
“The stock market has a very efficient way of transferring wealth from the inattentive to the attentive.” Thank you, Warren Buffet.
Continue reading "Monitoring Your Investments is a Sisyphean Task" »
“We envisioned this from day one. We prepared for this.
We expected this. We deserve this.”
—Pete Carroll, Coach of the Seattle Seahawks
2014 Super Bowl Champions
Pete Carroll’s statement may sound cocky, but it’s preceded by a great deal of preparation and hard work. The cocky mentality is just the end product. For me, the Seahawks methodology has many parallels to investing and should be embraced by investors.
It just so happens that my house is directly across the lake from the Seahawk’s headquarters and practice facility. It’s a sensational complex on the shores of Lake Washington where I can often hear the troops practicing. Their gigantic weight lifting room has large windows looking out onto the lake, the executive offices overlook the outdoor fields, and the indoor football arena has windows encircling the upper portion of the structure. The point being, I can tell you their schedule and how they burn the midnight oil. More often than not, when I get up in the morning at 5:30 AM, I can attest to the fact that the Hawks are up as well. As John Elway use to say, “The secret of success is that there is no secret.”
Continue reading "Super Bowl Lessons for Investors" »
I had breakfast the other day with a group of friends, and we spent the morning discussing what it meant to be ‘in the Zone’. Interestingly, we had four very different perspectives. One person came from a professional athletic perspective, another was a race car driver, another was a minister and then there was myself, a stock trader. Let’s face it, by any one’s bench marks, we represented a wide spectrum of perspectives about what it takes to be ‘in the Zone’.
We bounced philosophically across a wide landscape, but surprisingly found common ground that is best described as “precise reality based upon factual truth.” We finally settled upon the fact that anything that gets in the way of allowing one to embrace reality and the naked truth of the situation hinders attainment of the “zone”.
Continue reading "Four Perspectives About ‘Being in the Zone’" »
“Tell me and I forget. Teach me and I remember. Involve me and I learn.” Those are the words of Benjamin Franklin.
I’ve been a stock market trader for 25 years now, and one of the most persistent and recurring questions I get from my circle of fellow full-time traders is “why do you spend your time teaching? Doesn’t the market offer you everything you need?” Last night, I was at an investment seminar where one of my students gave a presentation and unexpectedly answered this question for me. I thought I’d use the experience to address my trading buddies’ queries as well as share with my readers what another individual investor feels are the key lessons he’s learned in the last 10 years from his own personal growth as well as from attending my college investing classes.
Continue reading "The Teacher Becomes The Student" »
“Mr. Roze: we’d like to offer you 90 minutes to speak to our group and tell us all you know about investing.” I have actually received this sort of invitation more times than you can imagine. Let me personalize it. If you are an accountant, engineer, doctor, lawyer or something similar, how do you answer this challenge? Frankly, it’s impossible. Similarly, after 25 years as a stock market trader, it’s not possible to tell you “all I know about investing” in 90 minutes. In lieu of that, what I have managed to do is identify 5 key pivotal passages in my investing journey, and when I’m presented with this kind of invitation, I share those passages and amplify upon each as the audiences seem inclined.
The first passage in my journey as a trader happened very early on. Put simply, I embraced technical analysis and charting. I learned to read stock charts, and I came to trust and believe what those charts were telling me.
Continue reading "Tell Us All You Know About Investing" »
It’s one thing to blindly take my word when I claim the power of seasonality will enhance the probability of you making a profitable trade. It’s another for me to present you with a basket of 6 stocks in my first blog of December which all had attractive historical calendar seasonalities and then in January to look back and see how they performed. Here’s the link to my earlier blog:
The purpose here is not to toot my own horn. The purpose is to encourage individual investors to enhance their trading tool kit. Seasonality is a no-brainer enhancement. You’ll find the Seasonality Tool at the bottom of this page.
Continue reading "How My Basket of Seasonality Stocks Bested the Market by 150%" »
Each year at this time, I become a trader of “change”. I take certain steps to tackle challenges I’ve encountered throughout the year and endeavor to refashion and update both myself and my trading plan. Above my desk sits a guiding quote by Dr. John Norcross:
With investors and traders, I’d add a sixth “P” for Patience that seems to be in particularly short supply within the stock market arena.
Continue reading "The Essential Investor’s Formula for the New Year: Psych, Prep, Perspire, Persevere, Persist" »