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Share Market GEMs

Share Market GEMs? or
Wall Street Words of Wisdom (clichés)?

(or in some cases - a Wall Street furphy*!)

Those share market pearls of wisdom that many people take years to hear about.
Here they are - all in one place. But are they all for real (or furphies*)?

The easiest person to fool is yourself! - So take care!

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Related links: Robert's Philosophy; Finance Industry Cynic
 Share Market Indexes; Share-Market-Ready; Paper Trading; Stop Loss; Support and Resistance;
 Trend-spotting; Funda-Technical Analysis; Sensible Investing; Contrarian Investing Redefined; Technical Analysis

Brainy's Share Market GEMsIntroduction

It can take many years of reading text books and newspapers,
attending lectures and seminars, and watching news reports,
to hear a number of those very useful “tips” and observations about the share market.
We can call them Share Market GEMs, or pearls of wisdom.
They might be very useful cliches, adages, proverbs, axioms or Wall Street sayings. 

Many experienced market-watchers wish that someone could have told them all these things
early in their investing/trading career - it would have given them a huge head start.

But, a word of caution - some of the Wall Street pearls of wisdom are furphies*!

 Toolbox Members can download the 40+ page GEMs document here (a pdf file).

The sceptic's viewpoint and the furphys!

Mind you, there are enough of the Wall Street pearls of wisdom for the sceptic amongst us to be able to argue that in some cases, perhaps "someone" has devised a cliché and put it into circulation for the benefit of someone in the finance industry. If any one of these clichés somehow encourages more people to participate in the financial markets, then it helps the brokers (who receive commissions), and it might be assisting the fund managers (who receive funds to manage). But surely, the cynic wouldn't really think this?

Brainy's Share Market GEMs

This information is just one of the many tools
in Brainy's Share Market Toolbox.

“May your losses be small, and
may your profits run like blazes.”

Please note: There is no guarantee that there is any truth
in any of these “gems” (watch out for the furphies).

You should not take any action on anything that you read here without consulting a properly licensed,
qualified and trustworthy professional.

Robert has lots of Free Stuff available...
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Share Market GEMs
Summary List

The share market GEMs listed below are explained in more detail
in the download document referred to above.
In addition, some details for some of these GEMs is available by following the links below.
For a brief discussion about the origin of the word furphy, see the text at the bottom.
  1. Important considerations
First off in Robert's list of share market gems are some important considerations.
  • The share market is like an elephant 
  • The best time to prepare for the next bull market is before the bulls have bolted
  • The 3-Ways Rule - Trends
  • Only invest in something that you understand
  • Understanding the market past
  • The investor's first job is to preserve capital
  • Buy low, sell high
  1. Company performance
  1. Financial returns
  • Past performance is no guarantee...
  • What's most important? - Dividends or capital or TSR (total return)?
  • The Rule of 72
  • Never bet the house
  1. Investing and trading facts
  1. Emotions and psychology
  1. Profits and losses
  • You can't win them all!
  • The win-loss ratio
  • Be prepared to sell!
  • Stop Loss = How to minimise losses
  • Consecutive losses
  • Cut losses early
  • The first loss is the cheapest and the best
  • A Stop is a Stop!
  • You can't go broke taking a profit - Furphy!
  1. The markets and more...Strategies for investing and trading
  1. Research and education
  1. Key concepts for investing and trading
  1. Investing and trading - Wisdom
  • Keep your eye on the ball
  • A routine is critical
  • Risk analysis and management is vital 
  • In order to change the outcome you need to change the actions
  • A long journey starts with a single step
  • Maintain perspective
  • Remember your Investing/Trading Plan 
  • Beware the value trap of cheap stocks 
  • Beware the greater fool principle.
  • The markets can remain irrational longer than you can remain solvent
  • Don't try catching a falling knife
  • One man's measure is another man's yawn.
  1. Strategies for investing and trading
  • Buy on weakness
  • The price is running
  • Beware the “up-chase”
  • Buy on rumour, sell on fact
  • Trade on index adjustments (re-balancing) 
  • Wouldn't buy the index? — Don't buy a stock
  • Watch out for a lack of liquidity 
  • Pyramid your buys
  • Dollar cost averaging? <- Furphy!
  1. Market tops and bottoms
  • The market leads the economy 3-6 months
  • Bull market top
  • Bear market bottom
  • Accumulation and distribution
  • Volume behaviour
  • Market indices diverging
  • Advance Decline indexes
  • New Highs and Lows
  1. Time-of-Year observations
  • Bad-news Friday
  • January Barometer — As goes January, so goes the year
  • Sell in May and go away
  • The weekend and holiday sell-off
  • June tax-loss selling
  • Europe & US summer vacation (August)
  • Confessional season profit warnings (May-June and Nov-Dec)
  • Reporting season opportunities (February and August)
  • Reporting season tardiness
  • September (and October) — a bad month?
  • September (and October) — a good month?
  • Christmas rally = Santa Claus rally 
  • Federal elections - go nowhere
  1. Cycles and Seasons
  • The 18-year property cycle
  • The 4-year US Presidential Cycle
  • Lunar effects
  1. Brokers, fund managers and the big boys
  • Fund Manager returns
  • “Smart money”
  • Big end of town
  • How to invest a large amount without anyone noticing
  • Broker & analyst valuations and recommendations
  • Who can you trust?
  1. General observations
  • When Wall Street sneezes, other markets catch a cold
  • The world's largest economies
  • P/E – Price/Earnings Ratio
  • Profit takers – they do exist
  • Bull and Bear market durations 
  • Bulls and bears on the 200day MA
  • Money is made in a bear market
  • The market abhors a vacuum
  • Black Monday 1987
  1. Shares and other financial instruments
  • Shares are dangerous
  • Shares might not be shares
  • Derivative products
  • Leveraged products
  • Leveraged finances
  1. Commodities
  • Supply and demand equation
  • Global prices impact local stocks
  • Volatility Index - VIX and XVI 
  • Gold and $US
  • Australian iTraxx index
  • Libor
  • Baltic Dry Index (BDI)
  1. In summary
  • Self-fulfilling prophecy?
  • How old is Technical Analysis?

Toolbox Members can download the
Share Market GEMS pdf booklet.

And beware the sharks in the ocean!.

* Furphy - what's the significance?

The authentic furphy water cartThe original furphy was a water cart made in the 1880s that came to fame in the first World War where it was used by Australian troops to deliver water to the troops. The word furphy gained usage as Australian slang for a rumour or unlikely story, because it became associated with the telling of stories during the war.

See more information at Wikipedia, or at the authentic Furphy web site, where you can read up about the Furphy company (in Shepparton, Victoria, Australia) that is still operating today but in a much more modern form.

The information presented herein represents the opinions of the web page content owner, and
are not recommendations or endorsements of any product, method, strategy, etc.
For financial advice, a professional and licensed financial advisor should be engaged.

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Last revised: 18 April, 2016.