The Abnormal Returns Blogger Wisdom Reject Post

Abnormal Returns is one of my favourite places to go for some good quality reading material, so when I saw that Tadas was on a break my first reaction was to panic.  How would I ever fill my days without his timely and interesting links?

But I was not to be let down.  You see, AR readers were not left to wallow in their misery while Tadas was on his break – they were given a daily dose of blogger wisdom via his network of very clever/experienced/learned blogging contacts.

It was brilliant reading, I liked it (almost) better than his normal linkfest.  However I was disappointed to note that one particular blogger was not given the opportunity to provide answers to his questionnaire.

So after drying my tears and telling myself that I am, in fact, very important, I have decided to remedy the situation.  I love finding out things about other people, but I also like finding things out about myself so here goes.

If you had a son or daughter just beginning to invest, what would you tell them to do to best prepare themselves for a lifetime of good investing?

I’d tell them to get used to being wrong.  The need to be right is, in my experience, the most difficult hurdle to overcome.
And the other thing I’d tell them is to know exactly what’s at risk BEFORE opening a position, and keep the risk small.
I think if you can do those things consistently, everything else will fall into place.

In the past year what book, article or blog post changed the way you think about an important topic? (Need not be investment-related.)

When I was developing the FX method that I trade now, I was struggling to make heads or tails of it and this blog post reminded me that sometimes it’s the very simplest things that work, and not to over-complicate it.

If you could work, without pay, with any investor or trader for one year, who would it be?

Mike Bellafiore, from SMB Capital.  There is just so much I could learn from him about intraday trading that I don’t yet know.  I’d also love to work in a group environment like that, and be accountable to someone more experienced than me.

Considering all the topics you have written about, which you think is most underappreciated or overlooked by the majority of investors?

I think what happens to a trade after you enter.  There is so much out there about entries, indicators and even psychology but very little that explains how to manage a trade that is in progress.  Getting a trade on is easy – it’s how you manage it once it’s in play that determines your pay packet.

What piece of wisdom or advice do you most wish you had ignored?

That writing puts is a great way to buy stocks at a bargain price.  One one hand I wish I had ignored it – but then I’d have to ask, would I be where I am today if I had?

What asset (stock, fund, etc.) would you feel most comfortable buying and holding for the next ten years?

I don’t usually look at a ten-year horizon, but if I had to it would definitely be a house – preferably one I could subdivide and renovate to add extra value.  I would never commit to holding a market-related product for 10 years.

So there you have it!  Thanks to Abnormal Returns for asking me to be a part of – Oh.  Well, nevermind….

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