In 2009, every “professional” money manager I know freaked over the lousy economic news and even lousier economic statistics and stayed out of the stockmarket — a big mistake. 2009 was one of the greatest stock booms in history.
There are two lessons:
1. News is toxic — both good and bad news.
2. Our 15% Up and Down Rule works. Sell when it drops 15%. Buy when it rises 15%.
That’s it for today. I worked on four zillion ideas over the weekend, but finished none.
See you tomorrow.
Harry Newton
My best-selling technology dictionary is now even bigger, -- more pages, more definitions, more up to date. Corporations in telecom, networking and computing use it for training. Telecom users love it because it explains the industry. Colleges use it in courses. Lawyers use it in litigation. The New York Times said it is "A fixture on the desks of many who deal with the technical world." An industry newsletter said it was "The one reference book we can't do without." An industry newsletter said "Pound-for-pound it is the best telecom book we have ever seen." Reviewers on Amazon have consistently given the book five stars. A feature of the dictionary is that many of the definitions are not just an explanation of the technology, but also a primer on how the technology is used. Do's and don'ts about using the technology. Tips from personal experience. What works and what doesn't. What to watch out for. Warnings. The latest edition now defines 33,889 terms. That's 44 years of hard work. Buy your copy here, please. Click here.
At first I liked the 15% rule and then started to think about it. Hard to make a profit when giving up 15% on either end for a total of 30%.