Itching Lemmings or the Rules and Regulations of Fear and Greed
At the beginning of May we wrote about lemmings. Ten days ago we wrote about the seven year itch. This article ties the two together and is therefore about itching lemmings.
When Mr. Baron Rothschild was asked how he had managed to become so wealthy responded by saying; “I never buy at the bottom and I always sell too soon.”
This comment seems wrong. Surely we must expect one of the world’s richest men to buy at the bottom and sell at the top? What Mr. Rothschild was saying was not to become a slave to either of the two biggest emotional pitfalls a trader faces. Greed and Fear. Do not be greedy in trying to buy at the low and sell at the high and do not be fearful in both entering and exiting a position.
The only way that can be done is by opening a position once the trend has been established and exiting the position intentionally even though it may not be the top.
If we couple Mr. Rothschild’s investment philosophy with the 10 rules below, we have the makings of a successful trading business.
RULES
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