In reality, the entry size is often more important than the entry price because if the size is too large, a trader will be more likely to exit a good trade on a meaningless adverse price move. A common mistake made by traders is that they let their greed influence position sizing beyond their comfort…
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Content belongs to Acquirer’s Multiple. Reproduced: Pari-mutuel betting is a betting system in which all bets of a particular type are placed together in a pool; taxes and the “house-take” are removed, and payoff odds are calculated by sharing the pool among all winning bets. Munger says the same system can be used successfully in the stock market where the most…
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At its core, this is just instant noodles right? Why can this brand charge higher than normal brands? At $2.90? (photo credit: noob cook recipes) What is the most important aspect of pricing? It boils down to value to customer. The price a customer is willing to pay, therefore the price a company can achieve,…
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Because I have a real fear of the markets. I have found that the greatest traders are the ones who are most afraid of the markets. My fear of the markets has forced me to hone my timing with great precision. When I am trading properly, it is like a pool player running racks. If…
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Don’t Ignore Your Existing Investment Portfolio Admittedly, it is more exciting to discover opportunities outside of your portfolio, but it’s not necessarily more beneficial. Many investors forget to look at their existing portfolio for ideas. Often, your best opportunities are right in front of you. If a stock you hold drops in price, this may…
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Anticipating Trouble “I think part of the popularity of Berkshire Hathaway is that we look like people who have found a trick. It’s not brilliance. It’s just avoiding stupidity.” Who going in a life anticipating the worst case? Charlie does. He prefers learning what not to do, it is best if you learn through other…
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