iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,329 Blog Posts

Investing Tip for Beginners and Morons

Listen to me. If you tried to get as good as me, it would take you an entire lifetime, if not two or three, in order to be on par with my skillset. HOWEVER, you can be a very competent investor using one simple trick.

Understand that all knowledge is already priced into markets. If looking over the investment landscape and asked to choose amidst thousands of stocks in a sea of gray, it can be intimidating for people who are new or stupid.

BUY STOCKS NEAR 52 WEEK HIGHS AND EVEN BETTER ALL TIME HIGHS.

There is a reason why expensive clothing is expensive, expensive cars are expensive, and expensive wines are expensive. Whilst the branding aspect plays a role, more often than not expensive things are produced with a higher level of quality by people who are experts in their field. You will of course attempt to push back against this and suggest Old Navy is the same as Gucci — but it isn’t so SHUT THE FUCK UP.

When a stock is at a high, there is no overhead resistance that can stop it. The reason why there are levels of resistance and support is due to price memory, which is a fancy way of saying folks like to sell shit when their cost basis is achieved.

If you only bought stocks near their highs, not small capped shit but large, you could probably outperform the vast majority of professional money managers.

I had a solid session, closed +33bps with an 85% long book — tilting towards long oils here.

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