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From his blog: "If you are going to trade stocks, you just have to follow one rule and remember one thing. That rule is always have a definite knowledge advant
by rationalbeaver 18y ago
From his blog:
"If you are going to trade stocks, you just have to follow one rule and remember one thing. That rule is always have a definite knowledge advantage about the company you are trading, and always remember that every stock transaction has a sucker, and you have to know whether its you or the person on the other side of the trade. No one buys a stock from your, or sells one to you knowing they are leaving money on the table."
Sounds to me like he was taking his own advice. He just didn't mention that Rule #2 of trading stocks is to not get caught with your better-than-average information.
- tomsaffell 18y ago>..That rule is always have a definite knowledge advantage.. >..to not get caught with your better-than-average information.. The difference between information and knowledge is crucial here, though I think the word 'knowledge' is slightly misleading. If we assume that by 'knowledge' he meant 'something that is more than merely a function of information', i.e. belief/ wisdom then his statement holds. I think most traders would like to think that this is the case (whether the are right or not), because it justifies their existence / management fees. If you read it as 'information = knowledge' then it looks very suspicious. I'll give him the benefit of the doubt, because if he had meant 'information' then his post would have been unfeasibly implicating.