Just a few things I came across this morning:
- Keep your losses small – An interview with Bruce Babcock about his trading methods and risk management procedures. (via Commodity Trader)
- What if everything you knew about stocks…was wrong? – An article that takes a sobering look at some commonly held beliefs about the markets. It offers some ideas to make money in any kind of market. (via PF Blog)
- The return of BondTrader – BondTrader is back to blogging after taking some time off to find new markets to trade. See what made him decide on the mini-Dow futures (YM) and the e-mini Russell 2000 (ER2).
- The Big Picture has a graph comparing the current NASDAQ chart to the 1929 bubble. That reminds me that I just saw a chart of the Nikkei’s bubble pop the other day… 15 years after the pop and it’s still fugly.
- Buy and Hold is Not a Complete Investing Strategy – An excellent argument against ‘buy & hold’.
I would argue that the overlay of the Dow during the depression is encouraging at this juncture? After bottoming in 1933 the Dow went on for a multi-year recovery run. If the overlay plays out, we are at the beginning stages of such a run in the Nazz. I find that hard to believe, but hey, who am to argue with history?!
I also remember when I first took a look at the action from 1929, I was surprised to see that there were many sharp rallies (30% and more?) in the market before the Dow finally hit rock bottom. I had always believed the darn thing went straight down and stayed down.