Comments on: Coach Yourself as a Trader

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Sun, 03 Oct 2010 14:21:16 +0000

[...] * Coaching Yourself – John Forman offers three best practices. Here are Chris Perruna’s top three self-coaching practices. [...]

By: Pro Mukherjee

Pro Mukherjee — Fri, 25 Jul 2008 20:04:57 +0000

Another excellent article Chris. I’ll post a link to it on my blog over the weekend – it’s something my readers would appreciate and benefit from. Regards – Pro

By: Janet

Janet — Wed, 23 Jul 2008 09:30:45 +0000

You surely don’t need to apologize for anything! Thanks for the good sound advice. Your expertise is greatly appreciated. Hope you are having a great summer!

By: Chris

Chris — Wed, 23 Jul 2008 01:52:16 +0000

Hey Terry,
Good to hear from you. Well, the best answer I can give is there is a countless number of ways to make money in the markets. I can’t say that he is right or wrong or that I am right or wrong. Cutting losses works for me so it’s right for me.

Probably not the answer you are looking for. The true answer is that you must do what works for you (and that may be different than both Ken and me).

I can say this: we can’t argue with a Forbes 400 billionaire, can we?

Wiley sent me a copy of his book and I thought it was decent but not in my top 10 favorites.

Hope that helps.

By: Terry Zink

Terry Zink — Wed, 23 Jul 2008 01:23:43 +0000

About cutting losses: A few months I read Ken Fisher’s book “The Only Three Questions that Count” and he has a different perspective on cutting losses than what you or I have learned.

His perspective is to look at your portfolio as a whole. Even if one of your stocks is down 80% but your overall portfolio is up (or beating the market) you shouldn’t sell. You should be satisfied that your portfolio is outperforming. In other words, he’s not big on cutting losses simply for the sake of cutting losses. Rather, he says that you should only sell a stock when the fundamental factors driving the company change.

What’s your take on this? Ordinarily, I would be disinclined to heed his advice but the fact is that he is worth over a billion dollars. That demonstrates that he has significant market knowledge and experience that I can’t discount.