A new face keyboard at Minyanville. Professor Jeffrey Cooper begins his tenure with a flourish in his column “Perception Trumps Reality”:
If you go on the assumption that perception trumps reality your decision making can be derived from the idea that it is the state of mind of the crowd that determines the fundamentals rather than the other way around.
For me, because psychology drives the game I see the market as the ultimate arena of self discovery. The most important trading weapon you own lies not in any book or Holy Grail Strategy or Black Box system but within yourself: it is, simply put, the power to refuse to allow small losses to turn into large losses. Fundamental rationalizations are meaningless to understanding the psychological nature of the game. There’s always a favorite Auntie Rationale of why you should hold on when a stock is going against you. But respecting your Uncle Point keeps you in the game.
Good stuff. Go read the whole thing.
That reminds me, I don’t think we’ve recited the BMB mantra in a while. That would be: Never Lose Big.
Recent Comments