Archive | MBA Blog

Emotions that rule the Stock Market

Emotions that rule the Stock Market

  There are two major emotions that rule the market.   One is fear.   The other is greed.   Both of these emotions, if not mastered, can destroy profit.   Fear comes into play when bad news causes inexperienced traders to bail out of their positions at any price.   Greed was rampant during […]

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178 Seconds

178 Seconds

  "According to a 2004 study, the average life expectancy of a non-instrument rated pilot who flies into clouds (or other ‘instrument’ conditions) is 178 seconds." In other words, the inexperienced pilot is dead within three minutes after entering clouds.   It’s a horrible experience called spacial disorientation. It’s a very real phenomenon, and I’ve […]

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Rumors and Insider Trading

Rumors and Insider Trading

  Many inexperienced traders hope to get a "hot tip" on a stock so they can get in before a meteoric rise. They were told by their Uncle Joe (who works for ABC widget company) that the stock is about to double because of something he was told on the "QT."   Forget it!   […]

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Stocks Rise and Fall Like the Tides

Stocks Rise and Fall Like the Tides

  Anyone who has any experience with the ocean knows that you can’t fight the tide. The rise and fall of the sea moves everything with it.   The video link below was taken at Halls Harbour, Nova Scotia. The area has one of the most extreme tides in the world. When you click the […]

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Ride the Wave of a Great Stock Trade

Ride the Wave of a Great Stock Trade

    It’s an old Beach Boys song called "Surfin’ USA." Then it hit me… My trading system is like surfing. A surfer learns to use the energy of the ocean by catching a wave at just the right moment.   A new surfer "wipes out" a few times before he masters it, but once […]

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Is Trading Stocks Like Spitting Into the Wind?

Is Trading Stocks Like Spitting Into the Wind?

  It sounds cliche, but when it comes to trading, I teach my students not to spit into the wind.    Well, not literally. It’s just an expression. But, my students know what I mean.    If you spit into the wind, you’re likely to get spit in your face. And, who wants spit in […]

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About Face for Facebook

About Face for Facebook

  I must have had a dozen calls the other day. I could hear the excitement in their voices, too.   "Rick, should I buy Facebook?" Facebook was all anyone was talking about. In fact, people were cashing in their kid’s college accounts to buy Facebook.   So, did I buy Facebook?   Heck no.   […]

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Objectivity is the Key

Objectivity is the Key

  Stocks gain or lose value depending on a variety of reasons.   A bad earnings report can make a stock tank in value.  A good one can make it soar to unexpected heights. Likewise, good news about a company can make the stock jump.  Bad news can make the stock fall. But, here’s the funny […]

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