TEN WAYS TO LOSE MONEY IN WALL STREET
The Market Cynic from Art of Contrary Thinking originally published 1954.
After many hours of toil and deep thought I have compiled a dependable guide for stock traders. I shall not attempt to explain or qualify these precepts, realizing that my readers will doubtless follow them regardless of any advice to the contrary.
1) Put your trust in board-room gossip.
2) Believe everything you hear, especially tips.
3) If you don’t know, guess.
4) Follow the public.
5) Be impatient.
6) Greedily hang on for the top eighth.
7) Trade on thin margins.
8) Hold to your opinion, right or wrong.
9) Never stay out of the market.
10) Accept small profits and large losses.
Neill, Humphrey Bancroft. Art of Contrary Thinking (p. 19). Caxton Press.
Mike Shell is the founder and chief investment officer of Shell Capital Management, LLC, a registered investment adviser, and portfolio manager of ASYMMETRY® Managed Portfolios. Client accounts are held in each client’s own name at Goldman Sachs, which holds the money, handles deposits and withdrawals, executes the trades, keeps the accounting and sends the statements. Shell Capital makes the investment decisions.
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