Using Technical Indicators that are sold by those so-called "professionals" who can't make their millions in the real world but opted to sell their lousy products instead?
- Of course not.
Following tips, the crowds, or more correctly the herds?
- You got to be kidding.
Following the big and wealthy such as the Sovereign Wealth Funds?
- Give me a break! These funds are run by politicians, not Warren Buffett!
Following the government?
- Argh! Let me give you one very good example: Gorden Brown, the ex-Chancellor of the Exchequer of the United Kingdom, sold 3/4 of the national Gold reserve at about $275 -- which was pretty much at the bottom between 1980 and now!
Following the legendary icons?
- Jim Rogers said short US bonds back in September 07 (see Why I Want to Abolish the Fed too!) but US bond prices went up up up -- you will go broke if you had followed that advice. In fact, all the trades I had executed with the 10-Year Note had been to go long (see How to Make 40.51% in 4 Days and How to Make 116.71% in 9 Days), which were against what Rogers suggested.
- Boone Pickens, a legendary Oil and Gas expert, suggested to short Crude Oil and Natural Gas (see Boone is Betting Against Boon). I did think that Pickens could be right at the time, but I was not willing to trade the volatility amid the superbullish outlook I perceived. I rolled over my position immediately at a pullback which I considered risk-conservative (see Natural Gas). Natural Gas continued trading higher after that.
- Warren Buffett sold out 138 million ozs of Silver years ago at levels below 8, if I am not mistaken. What's the price of silver now? 18! So why did Buffett sell his Silver considered he's an *investor* who always advices the others to *buy and hold*?
Taken from one of my posts in the past, namely My Secrets:
"Human beings first thought the world is flat and later realised that it isn't but round. Now the general belief is that it is actually oval. Out of myriad of things you have ever read and learned, 50% of them could be completely untrue. For the rest of the 50%, probably only 20% of them will ever be able to stand the test of time."
Those who hold the secrets that made them millions, if not billions, will never sell them to you for just $200, if not $20,000. Think about it.
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2 comments:
Hi Boon, I started learning TA few months back and have to admit that your blog is the main source of my reading materials (I won't call you sifu though..hahaha). Yesterday what you have said about "soft side" to von was really inspiring to me. I have actually compiled it as below:
Boon: von: The most difficult aspect is not the technical skills, is your temperament. Most people work 9 to 5, as a teacher, as an accountant, or lawyer to earn a living, to accumulate wealth. But in the investment world, all these rules that govern the conventional professionals, such as the teacher, accountant, etc, do not apply. An investor doesn't have to work hard. They don't have to spend the same amount of time to earn a lot, lot more. So, you have to ask yourself: if you want to be a successful investor, what does it take? Whatever you do in the markets, you essentially contribute nothing to society, and yet you want the society to pay you a great deal. What's the logic behind this? Buffett makes billions and gave away billions. What is there for us to learn? what I want to say is, you need to be a Warren Buffett -- someone who is humble, patientyou have to be an EXTREMELY SUPERIOR INDIVIDUAL. No arrogant, greedy, etc individual can succeed in this in the long term. You see, Buffett lives and works in Omaha, not New York. even after so many billions he made, he still possesses the same attributes that took him to the sky. That's very important. It takes a great deal more than the technical aspects to succeed in the long run. I hope you will not overlook the 'soft' sides of all these in your pursue.
Many thanks for your participation in my readership.
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