What does it really take to last five decades in the markets? This week is light on trading, heavy on reflection and recalibration. Some notes from a Market Wizard who’s still in the game after 50 years:
Perfect. It seems to me that too many are spending too much time screening for ‚the next big winner‘. This leads to loss of concentration and focus, which leads exactly to non-optimal sizing, trade and risk management. Most, if not everyone, would be better off to have a really small, rather consistent watchlist with leading stocks and some ETF’s and trade the max out of them. The whole focus and awareness will be much improved. In the end, even the Greats complain about over-trading … I suspect it comes from constant screening. What do you think?
Perfect. It seems to me that too many are spending too much time screening for ‚the next big winner‘. This leads to loss of concentration and focus, which leads exactly to non-optimal sizing, trade and risk management. Most, if not everyone, would be better off to have a really small, rather consistent watchlist with leading stocks and some ETF’s and trade the max out of them. The whole focus and awareness will be much improved. In the end, even the Greats complain about over-trading … I suspect it comes from constant screening. What do you think?
This applies to long term investing too. More ideas=more distraction.