Tuesday, May 22, 2007

Wisdom from Rogers and Livermore

So far the two most insightful quotes about investing and trading I have seen:

"I just wait until there is money lying on the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime." --- Jim Rogers

After I claimed that what Rogers said is the key to the success in the market, I got a lot of doubts: How can you know it is sure money? There is no sure money, everything has a probability. If there are, other people already picked it up long before your do? Market is efficient. Why do you think you have an edge, blah blah. Sounds reasonable, however they only discovered one side of the market, they only see the chaos, the unpredictibility, the change and move on the surface, what they fail to see is the the other side of the market perfectly described in Jesse Livermore's word:

"Wall street never changes, the pockets change, the stocks change, but Wall Street never changes, because human nature never changes" -- Jesse Livermore

Human nature never changes, that is the sure thing, that is the ultimate source of sure money Rogers talked about, and it happens every minute every day in the market. The only difference is someone can see more of them, at the earlier stage than the other market participants. When the majority see it, sure money turns into crap shot, since starting from that moment market debut on the stage to shows its overrated, overclaimed efficiency.

1 comment:

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