Quotes About Market

It's time to place the market within a moral framework - even if that means standing up to companies who make life harder for parents and families.

Friedman published a book aimed at a general audience, Capitalism and Freedom, in which he argued that personal freedom can only be assured by the free market system.

Well, another market is being created now out of Internet technology.

I mean I'm not smarter than the market, but I can recognize a good tape and a bad tape. I recognize when it's right and when it's wrong and that's what my strength is.

The party line is that stocks historically have outperformed all other investment plans.

Creating change requires innovation: developing new products, creating new sales channels, reducing product development time, customizing products for increasingly smaller market segments. In addition, your company must be able to respond quickly to both anticipated and unanticipated changes created by your competitors and customers.

Regardless of the methodology used, before you decide to get into the market you have to decide where (price) or when (time) or why (new information) you will no longer want the position.

Likewise, when we lose money in the market we think we must have been wrong.

The stock investor can stay in the position forever. A futures speculator, on the other hand, will be forced out of the market when the contract expires. So even if he has financed a losing futures position, he is forced into making a new decision at expiration as to whether to stay with the position. The stock player has no such forcing point, which is why it's especially important to decide what type of participant you're going to be when you're in the stock market.

Next, you must select a method of market analysis that you are going to use. Otherwise, you will jump back and forth among several methods in search of supporting evidence to justify holding onto a market position.

Because there are so many ways to analyze the market, you will inevitably find some indicator from some method of analysis that can be used to justify holding a position. This is true for both profitable and unprofitable positions: you will keep a profitable position longer than originally intended and possibly have it turn into a loss, and you will rationalize holding a losing position far beyond what you were originally willing to lose.

Facts are neither right nor wrong; they simply are. Opinions are personal assessments and are right or wrong depending on whether they actually correspond with the facts. Therefore, only opinions can be right or wrong; facts cannot. Right and wrong are inappropriate for the description of business operations and market participation, and so are the terms win and lose. Participating in markets is not about being right or wrong, nor is it about defeat; it's about making decisions.

Market positions are either profitable or unprofitable, period.

Are you long because you are bullish or bullish because you are long?

So when an individual adheres to a market position despite the mounting losses, he is a crowd.

One of the most incomprehensible features of a crowd is the tenacity with which the members adhere to erroneous assumptions despite mounting evidence to challenge them.6 So when an individual adheres to a market position despite the mounting losses, he is a crowd.

We hope the future will turn out well, but we fear it won't. As members of the crowd we will always take these emotions to extremes. When the herd instinct combines with hope and fear in a market environment, we get panics and manias.

One of the oldest rules of trading is: If a market is hit with very bullish news and instead of going up, the market goes down, get out if you're long. An unexpected and opposite reaction means there is something seriously wrong with the position.

The next step in decision making is establishing controls, i.e., the exit criteria that will take you out of the market either at a profit or loss.

You must pick the loss side first. Why? Otherwise, after you enter the market everything you look at and hear will be skewed in favor of your position.

After you know where you want to get out of the market, then you can ascertain whether and where you are comfortable getting into the market. In contrast to what most people do, your entry point should be a function of the exit point.

Once you specify what price or under what circumstances you would no longer want the position, and specify how much money you are willing to lose, then, and only then, can you start thinking about where to enter the market.

Bottoms in the investment world don't end with four-year lows; they end with 10- or 15-year lows.

I have learned that when you've done your homework, once you recognize that supply and demand are totally out of whack, and you make your move, you are definitely going to get very lucky.