I don’t usually recommend people’s investment rules as they are often just a list of snappy platitudes – buy low, sell high – and of no value. These though come from one of the founders of the Market Technicians Association. The commentary is very good and thanks to Alex Spiroglou who runs the UK MTA Chapter for brining it to our attention.
As the markets once again approach historic highs – the overly exuberant tone, extreme complacency and weakness in the economic data, bring to mind Bob Farrell’s 10 investment rules. These rules should be a staple for any long term successful investor. These rules are often quoted yet rarely heeded – just as they are now. Bob Farrell is a Wall Street veteran with over 50 years of experience in crafting his investing rules. Farrell obtained his masters degree from Columbia Business School and started as a technical analyst at Merrill Lynch in 1957. Even though Farrell studied fundamental analysis under Gramm and Dodd, he turned to technical analysis after realizing there was more to stock prices than balance sheets and income statements. Farrell became a pioneer in sentiment studies and market psychology. His 10 rules on investing stem from personal experience with dull markets, bull markets, bear markets, crashes and bubbles. In short, Farrell has seen it all and lived to tell about it.
The full article is at http://stawealth.com/daily-x-change/1532-visualizing-bob-farrell-s-10-investing-rules.html