The Traders Journal

March 2013

The Traders Journal

Trading the Markets as Black or White

by Gatis Roze

Wrong is now right.  What I once considered unreasonable is now considered reasonable (and I don’t mean just stock markets).  On YouTube, you can watch American Eskimo dogs playing with their natural predators, the polar bear (check it out).  Nature and civilization as I’ve known them have changed!  As a trader, I have to change too. Investing demands that you be aware of what is on the stock market’s fashion plate.  What is in vogue, so to speak, and what is not.  You don’t need to transform yourself into some sort of “fashionista” but Read More 

The Traders Journal

Chasing Last Year's Winners

by Gatis Roze

Warren Buffett’s partner, Charles Munger, once said “All I want to know is where I’m going to die so I’ll never go there.”  There’s a parallel here with stocks.  The year in which certain equities top the performance charts more often than not precedes the year in which they die. On an annual basis, the press touts the year’s top performing asset category.  It’s nearly always a given that it will be different category than the year before.  The fact is that parabolic runs do not last.  Just refer back to the Internet or housing bubbles for many Read More 

The Traders Journal

You Can Talk The Talk But Can You Walk The Talk?

by Gatis Roze

I attend investment seminars as half-monk, half-hit man.  My time is a precious commodity, so if you are a speaker and see me in the audience, be prepared.  My hot button is when speakers show a few elaborate slides, “share” their four favorite tenets to successful investing and then launch directly into their marketing pitch.  They act as if they’ve given you the keys to the kingdom, proving their brilliance and justifying your attention. And those four tenets are invariably the same: The trend is your friend. Cut your losses Read More 

The Traders Journal

3 Investors, 3 Blind Spots, 3 Solutions

by Gatis Roze

Picture this:  I am at a cocktail party chatting with three people about investing.  The first person says, “I could be a really successful investor if only I could emotionally tolerate a bit more risk.”  The second person claims, “I could be a world-class investor too if I had access to the same information as big institutional investors.”  The third person believes that his market timing model is the last missing element holding him back from consistent profitability.  I have known all three of these part-time investors for well over a decade.  I’ll try to Read More 

The Traders Journal

Blind Spots

by Gatis Roze

I attended a lecture last week given by Dr. Anthony Greenwald, a psychology professor at the University of Washington.  Professor Greenwald was presenting findings from his new book, Blindspot, and as he spoke, I found myself thinking that he was addressing his comments directly to me.  As is so often the case, it seemed that this speaker was talking explicitly to me about trading the stock market.  The fact is, of course, that the professor never mentioned the markets.  But he did talk about the new field of study in psychology called the “Implicit Revolution”.  I Read More