The Traders Journal

November 2014

The Traders Journal

You Only Get 2,000 Profitable Trades Per Lifetime: Use Them Wisely!

by Gatis Roze

The National Football League can prove statistically that top running backs, such as Marshawn Lynch of the Seatte Seahawks, have a football lifespan of approximately 2,000 ball carries in their careers before their productivity falls off a cliff.  Major League Baseball has similar statistics for the number of throws their pitchers toss.  There is even a website, www.pitchsmart.org, which offers a unified set of optimal guidelines on pitching usage for different age groups to aid in injury prevention. My two points are these.  Once running backs approach Read More 

The Traders Journal

Stock Market Mastery: Blending Fundamental & Technical Analysis Part I

by Gatis Roze

The Harvard Business Review (November, 2014) just published its list of the Best Performing CEOs.  This list should interest investors since these top 50 CEOs have been undeniably effective in delivering total shareholder returns which averaged 1,350% while on the job.  That translates into a 26.2% annual return! One classic example of why investors should hitch their wagons to these “best” CEOs, such as Warren Buffett at Berkshire Hathaway (BRK/A), is that those investors who did so have been rewarded with a 950% return over the past 20 years.   From Read More 

The Traders Journal

Five Advantages Individual Investors Have Over Institutional Investors

by Gatis Roze

The walls of advantage once held by institutional traders over individual investors have come crashing down.  Emerging from the dust, there now marches an entire army of real advantages that individual investors hold over their formerly superior big brothers.   In the worlds of fundamental information, charting tools and trading costs, these institutional armies no longer have the high ground.  The field is indeed much more level.  Despite all the talk about program trading, derivatives and flash crashes, I urge you not to become demoralized or Read More 

The Traders Journal

Wizard Investing: Assembly Required, Construction Prohibited

by Gatis Roze

Read the Market Wizard books.  These remarkable investors use proven off-the-shelf tools and indicators which they then assemble into whatever profitable methodology that they’re most comfortable with.  What they don’t do is construct black boxes with proprietary indicators and complex algorithms and then proceed to make billions.  Yet it takes years – even decades – for many ordinary investors to realize it’s not about secret tools or esoteric indicators still waiting to be discovered.  It’s about the investors themselves.   In auto racing Read More