The Battle for Investment Survival by Gerald M Loeb

Overview

not a lot to learn from this book. very basic for my level.

Trend of market

The primary factor in securing market profits lies in sensing the general trend. Are we in deflation or inflation period? If we are in deflation, i would hardly bother to analyze most equities. I have know people to go to the expense of securing a through field report on a company, complete except for proper consideration of market factors, buying the stock because of the report and later losing a fortune in it at a time when a market study would have suggested that all equities should be avoided. And I have seen individuals make a great deal of money buying without much study of individual issues, the leading stocks under circumstances that suggested a fall in money and rise in shares. Thus effort should be concentrated first on deciding the trend and next in seeking out most responsive stocks.

Hard to Buy stocks vs Easy to buy stocks

The most consistently reliable danger signal in a stock is sharp advance and complete retracement of the gain on great activity after long series of advance in a market which one would ordinarily regard with suspicion anyhow.

For instance, if stock goes back and forth in trading range, it is normal. but if it gets away for straight gain, it should hold 50% or 99% of it. There is rarely a second chance to get aboard once a stock is started, and if it comes back and gives one the second change, it is usually better to pass it up. That stock is no longer hard to buy.

Always write it down

Writing down your reasons for making an investment what you expect to make, what you expect to risk, the reasons why should save you many dollar

Writing things down before you do them can keep you out of trouble. it can bring you peace of mind after you have made your decision. it also give you tangible material for reference to evaluate the whys and wherefores of your profits or losses.