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Trading: the long and the short of it

If you can keep your head while all around you are losing theirs, you’d probably make a good investor. Times of turbulence on stock markets can be times of opportunity for the savvy investor. Picture the scene last week. City traders losing X billion pounds a day and having to cancel the order for that third gold-plated Porsche. Pension fund managers taking one look at their huge losses and… shrugging because it’s not their money. Uninformed media sources proclaiming the end of the world. Meanwhile, you could have been quietly sitting at your computer, raking in the cash. Most people are aware that to be successful at investing you should buy low and sell high. What fewer people...

posted on: Jan 25, 2008 | author: Alex

Investor emotions part 1: Greed

“Working nine to five, what a way to make a living”, sang Dolly Parton. She was right, too, although today it’s more like “Working nine to six with a twenty minute lunch break, plus the commute, and probably an hour’s unpaid overtime on top and I never get any thanks and my blood pressure’s too high and my back’s killing me and… what a way to make a living.” Either way, working for other people is, on the whole, not the surest route to early retirement on a yacht anchored in the sky-blue waters of the Med. What are the alternatives? Well, you could start your own company (which is hard work), rob a bank (which is not...

posted on: Oct 15, 2007 | author: Alex