April 13, 2017

Successful investors have an edge and you should find yours too

To be wildly successful in trading, one must differentiate with the other traders. In other words, you have to find your "Edge". An edge could be an idea or a factor that someone else may not know of. 

Also it helps to think in a different level. Doug Kass writes, 
"Second-level thinking trumps first-level thinking in delivering returns. As Howard puts it, first-level thinking says, "It's a good company: let's buy the stock." Second-level thinking says, "It's a good company, but everyone thinks it's a great company and it's not. So the stock's overrated and overpriced: let's sell." First-level thinking says, "The outlook calls for low growth and rising inflation. Let's dump our stocks." Second-level thinking says, "The outlook stinks, but everyone else is selling in panic. Buy!""