Trading Psychology In 60 Seconds The Disposition Effect

In the book called Reminiscences of a Stock Operator, Larry Livingston our hero of the story, committed what we now know as the disposition effect, when he held onto his position in cotton which showed him a loss, but sold his position in wheat which showed him a profit. He came to the conclusion that this was the worst speculative blunder that anyone could ever make in the market.

Consider shareholders in stock code ABC – down 25% in a day. How many of them will continue to hold? It is a tough call to ask anyone to sell a position which shows such a loss. Many holders will be carrying much larger losses because this thing has been at $4.40 12 months ago.

So what can you do?

First of all, you make yourself mindful of the disposition effect and with this in mind you establish investing or trading rules that are directly related to stopping you from finding yourself in this predicament.

We do this by not buying into downtrends for example. We focus on the economic fundamentals of not just the company but the broader economy in which we find ourselves. In a COVID 19 world, this would mean many people would be holding onto travel related stocks and suffering from the same effect – holding onto the Webjet’s in their portfolio, but offloading their ZIP or Afterpay shares which are showing them a profit.

You can take smaller position sizes as a general rule and work out a worst case scenario and see if and when this scenario unfolds, what impact it can have on your overall portfolio.

Maybe you limit yourself to only one stock per sector, such as one building company or one bank and so on, because we often see how bad news affecting one bank, always leads to contagion in other banks. But we are not your financial advisor. We don’t know what is best for you. But we suggest, making the worst speculative blunder that anyone could ever make in the market, is one blunder you should surely strive to avoid.

The audio version of this article can be heard on the Money Thief Podcast.

China overtakes Germany as world’s biggest exporter

Sunday, January 10, 2010

Chinese officials have said that their country’s exports surged last December to edge out Germany as the world’s biggest exporter.

The official Xinhua news agency reported today that figures from the General Administration for Customs showed that exports jumped 17.7% in December from a year earlier. Over the whole of 2009 total Chinese exports reached US$1.2 trillion, above Germany’s forecast $1.17 trillion.

Huang Guohua, a statistics official with the customs administration, said the December exports rebound was an important turning point for China’s export sector. He commented that the jump was an indication that exporters have emerged from their downslide.

“We can say that China’s export enterprises have completely emerged from their all-time low in exports,” he said.

However, although China overtook Germany in exports, China’s total foreign trade — both exports and imports — fell 13.9% last year.

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Saturn moon Enceladus may have salty ocean

Thursday, June 23, 2011

NASA’s Cassini–Huygens spacecraft has discovered evidence for a large-scale saltwater reservoir beneath the icy crust of Saturn’s moon Enceladus. The data came from the spacecraft’s direct analysis of salt-rich ice grains close to the jets ejected from the moon. The study has been published in this week’s edition of the journal Nature.

Data from Cassini’s cosmic dust analyzer show the grains expelled from fissures, known as tiger stripes, are relatively small and usually low in salt far away from the moon. Closer to the moon’s surface, Cassini found that relatively large grains rich with sodium and potassium dominate the plumes. The salt-rich particles have an “ocean-like” composition and indicate that most, if not all, of the expelled ice and water vapor comes from the evaporation of liquid salt-water. When water freezes, the salt is squeezed out, leaving pure water ice behind.

Cassini’s ultraviolet imaging spectrograph also recently obtained complementary results that support the presence of a subsurface ocean. A team of Cassini researchers led by Candice Hansen of the Planetary Science Institute in Tucson, Arizona, measured gas shooting out of distinct jets originating in the moon’s south polar region at five to eight times the speed of sound, several times faster than previously measured. These observations of distinct jets, from a 2010 flyby, are consistent with results showing a difference in composition of ice grains close to the moon’s surface and those that made it out to the E ring, the outermost ring that gets its material primarily from Enceladean jets. If the plumes emanated from ice, they should have very little salt in them.

“There currently is no plausible way to produce a steady outflow of salt-rich grains from solid ice across all the tiger stripes other than salt water under Enceladus’s icy surface,” said Frank Postberg, a Cassini team scientist at the University of Heidelberg in Germany.

The data suggests a layer of water between the moon’s rocky core and its icy mantle, possibly as deep as about 50 miles (80 kilometers) beneath the surface. As this water washes against the rocks, it dissolves salt compounds and rises through fractures in the overlying ice to form reserves nearer the surface. If the outermost layer cracks open, the decrease in pressure from these reserves to space causes a plume to shoot out. Roughly 400 pounds (200 kilograms) of water vapor is lost every second in the plumes, with smaller amounts being lost as ice grains. The team calculates the water reserves must have large evaporating surfaces, or they would freeze easily and stop the plumes.

“We imagine that between the ice and the ice core there is an ocean of depth and this is somehow connected to the surface reservoir,” added Postberg.

The Cassini mission discovered Enceladus’ water-vapor and ice jets in 2005. In 2009, scientists working with the cosmic dust analyzer examined some sodium salts found in ice grains of Saturn’s E ring but the link to subsurface salt water was not definitive. The new paper analyzes three Enceladus flybys in 2008 and 2009 with the same instrument, focusing on the composition of freshly ejected plume grains. In 2008, Cassini discovered a high “density of volatile gases, water vapor, carbon dioxide and carbon monoxide, as well as organic materials, some 20 times denser than expected” in geysers erupting from the moon. The icy particles hit the detector target at speeds between 15,000 and 39,000 MPH (23,000 and 63,000 KPH), vaporizing instantly. Electrical fields inside the cosmic dust analyzer separated the various constituents of the impact cloud.

“Enceladus has got warmth, water and organic chemicals, some of the essential building blocks needed for life,” said Dennis Matson in 2008, Cassini project scientist at NASA’s Jet Propulsion Laboratory in Pasadena, California.

“This finding is a crucial new piece of evidence showing that environmental conditions favorable to the emergence of life can be sustained on icy bodies orbiting gas giant planets,” said Nicolas Altobelli, the European Space Agency’s project scientist for Cassini.

“If there is water in such an unexpected place, it leaves possibility for the rest of the universe,” said Postberg.

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Real Estate Tips: Window Coverings

By Adrienne Rockwell

When preparing your home to be placed on the real estate market, you want to make sure that your home looks as warm and inviting as possible to make buyers interested in purchasing the property. Many people know the old trick of having the home smell like fresh baked bread or cookies when potential buyers come for a showing, but there are many other things to consider as well.

A Home, Not Just a Property

Since homes are typically shown by a Realtor while the owner is away, the homeowner must be able to help the buyer see the home as the place for them by utilizing subtle cues. The seller wants the buyer to look at the property and think that, with a few minor changes, they would be able to live in the home comfortably. To achieve this end, it is important to realize that if the home is cluttered with too many family pictures and mementos, those artifacts of your personal life will get the attention that should go to the home itself. That derails the illusion you want to create, that the buyers would be at home there. On the other hand, the home cannot look like a sterile shell or it will be too hard for the buyer to visualize themselves living there.

[youtube]http://www.youtube.com/watch?v=YvTDhpUVDbY[/youtube]

Cosmetic Improvements

There are many things that you can do to the interior of the home to make it more inviting to potential buyers. Generally, when homeowners get ready to sell their home, the first thing they do is to get their home into a condition that is appealing and attractive on first impression. Any cosmetic repairs to the home that need to be made are usually completed then and all the walls are stripped of wallpaper or prior paint and repainted a neutral color. If the carpets need to be replaced, that is done as well.

Window Coverings Add Appeal

One of the easiest things to do is to ensure that you have attractive window coverings on the windows of your home. This is when the homeowner should replace or obtain window coverings for their home. The window coverings should be in neutral tones to match the walls and carpet. Bright colors should be avoided as the potential buyer may not like the colors that you have chosen and the sale might be lost because of it.

Choosing Window Coverings

There are many different types of window coverings to choose from when preparing your home for sale. Standard curtains, available in color-coordinated sets just about anywhere, are an easy choice with minimum involvement. The homeowner should ensure that the curtains are not too long for the window, and that the curtains are wide enough to cover the entire window with enough material left over to create a nicely draped appearance.

Many curtains come with optional valances and ties and the curtains look much better when the optional items are used as well. The homeowner may also choose to use blinds or shades in addition to the curtains. Basic window treatments will cost the homeowner a few hundred dollars, but they make the home more appealing to buyer and the home will sell more quickly, making the investment worthwhile.

About the Author: Adrienne Rockwell recommends Colorado’s Automated Homefinder, the place to connect with an expert

Longmont real estate agent

Source:

isnare.com

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Canadian Government apologises for Residential Schools

Thursday, June 12, 2008

Stephen Harper, Canada’s Prime Minister, apologized on behalf of the Canadian Government for its role in the Indian Residential School System in front of Aboriginal Leaders, elders, and more than 1000 outside the Parliament Building. Harper proclaimed, “The treatment of children in Indian residential schools is a sad chapter in our history. Today, we recognize that this policy of assimilation was wrong, has caused great harm, and has no place in our country.” This apology was seen at more than 30 event around the country, and broadcast live on CBC Newsworld and CTV Newsnet.

The residential school system was created based on the Gradual Civilization Act (1857) and the Gradual Enfranchisement Act (1869), which assumed the superiority of British Ways, prompting the need for Aboriginals to become “civilized” by becoming English-speakers, Christians, and farmers. The funding of the schools was provided by the Indian Act (1876) and by the federal government department, Indian and Northern Affairs Canada, and operated with the support of churches, generally the Roman Catholic Church and the United Church of Canada.

In the 1920s, attendance became compulsory for all children aged 6 to 15, and families who refused to cooperate were at risk of having the children removed by the government, and the parents sent to prison. The school systematically tried to destroy the aboriginal language and way of life, raising the idea of cultural genocide. Students were forbidden to speak their native languages, even outside the classroom, as to install the English or French language (and as result, to “forget” their native language), punishable by unreasonably severe corporal punishment. Practicing non-Christian faiths was also punishable by corporal punishment.

In the late 1990s, allegations of sexual abuse, as well as several physical and psychological abuse, arose, leading to large monetary payments from the federal government and churches to former students. The government also established the Aboriginal Healing Foundation, providing $350 million to fund community-based healing projects, and provided another $40 million in 2005.

On February 13, 2008, Australian Prime Minister Kevin Rudd made a similar apology in the Australian House of Parliament.

On June 21, 2008, Indian Residential School Museum of Canada is scheduled to open on Long Plain First Nation, near Portage La Prairie, Manitoba.

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Alex Sanchez suspended for drugs

Sunday, April 3, 200528 year old Alex Sanchez, outfielder for the Tampa Bay Devil Rays, is suspended without pay for 10 days for using a performance enhancing drug. Sanchez is the first player to be suspended under Major League Baseball’s new, stricter drug policy.

The Baseball officials and the players’ union have both decided to not disclose the specific substance which tested positive.

Sanchez originally planed an appeal against the ban, but decided against it. He denies taking any performance enhancing drugs and blames the positive test on over-the-counter vitamins, muscle relaxants and protein shakes that he takes, but has not identified any specific medications as of yet.

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3 Simple Steps To Learn How To Buy Bitcoin

Buying bitcoin is easy. There are some simple steps you need to follow to get started with how to buy bitcoin.

Step one, buying bitcoin is having your own account. When you create an account, you get a digital wallet instantly. Once you’ve logged in, click the ‘buy bitcoin’ button on top of the site. Enter the amount you are willing to pay in your local currency and select your payment method. From gift cards to bank transfers, surely you’ll find an option that best fits you.

When all that is done, click search and the offers page will open. Here you can see the list of vendors and their details like username, country, amount of positive feedback, and payment method.

Find an offer you like and click buy. This will lead you to an individual offer page. Once you read through the seller’s offer terms, enter the amount of bitcoin you wish to buy and click BUY. This will open trade with the instructions and the chatbox.

When a trade starts, the seller’s bitcoins are transferred automatically to Paxful’s secure escrow and at this point, the seller can’t cancel the trade. Only a buyer can cancel a trade at any moment and bitcoins will be transferred from escrow back to the seller’s wallet.

Follow all the instructions for a successful trade. Send the required files, documents, and make a payment. Once all these are done, click the “I HAVE PAID” button. If the buyer hasn’t made a payment and is not marked as the payment completed within the payment window time frame, the trade will be canceled and bitcoins are moved back to the seller’s wallet.

When both the buyer and the seller have verified that the transaction has been confirmed and all the terms have been met, the money will be released in your wallet.

Now, you have acquired your first bitcoin!

So that’s how you get involved with starting to purchase Bitcoin and other cryptocurrencies. That may be the easiest way to go. It’s the most popular one with plenty of volumes, plenty of liquidity meaning, plenty of buyers and sellers. You don’t have to worry about running out anytime soon of buyers and sellers when it comes to Bitcoin

Ontario Votes 2007: Interview with Green candidate Jim Reeves, York-Simcoe

Monday, October 1, 2007

Jim Reeves is running for the Green Party of Ontario in the Ontario provincial election, in the York-Simcoe riding. Wikinews’ Nick Moreau interviewed him regarding his values, his experience, and his campaign.

Stay tuned for further interviews; every candidate from every party is eligible, and will be contacted. Expect interviews from Liberals, Progressive Conservatives, New Democratic Party members, Ontario Greens, as well as members from the Family Coalition, Freedom, Communist, Libertarian, and Confederation of Regions parties, as well as independents.

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Automobile sales in the United States down sharply

Tuesday, February 3, 2009

Sales of automobiles in the United States fell as much as 35% in January, compared to the same month a year ago, as manufacturers reported their January sales.

Ford Motor Company NYSEF sales dropped 42% last month from the previous year. General Motors NYSEGM reported a 49% decline. Chrysler was hardest hit among the domestically owned manufacturers with a plunge of 55%.

The decline in sales has not been limited to just US manufacturers. Japanese automaker Toyota NYSETM reported a 32% drop in US sales from a year earlier, Nissan MotorsNASDAQNSANY dropped 30%, and Honda NYSEHMC sales dropped 28%.

Subaru and South Korean Hyundai Motor Company LSEHYUD were two of the few auto firms that reported an increase in sales. They posted gains of eight and fourteen percent, respectively.

On an annual basis, sales overall have also been plummeting. Industry-wide US car sales dropped 18% last year to 13.2 million automobiles.

GM announced today that it will offer voluntary buyouts to 22,000 employees in the US, in an effort to reduce its expenditures.

Last month, GM and Chrysler were given loans worth US$17.4 billion from the government after they warned of imminent bankruptcy.

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Sevilla signs Sirigu on loan from Paris SG

Monday, August 29, 2016

On Friday, French capital football club Paris Saint-Getmain announced they loaned Italian goalkeeper Salvatore Sirigu to Spanish club Sevilla F.C. till the season end.

29-year-old Sirigu started his career in Italy and joined the Parisians five years ago, in 2011. After playing 60 Serie A matches from 2009 to 2011, Sirigu became the first-choice goalkeeper at PSG for four years, playing 145 matches.

In five seasons at Parc des Princes, Sirigu has won four consecutive Ligue 1 titles, three Trophée des Champions, three Coupe de la Ligue, and two Coupe de France. Sirigu has played seventeen international matches, debuting in 2010.

Last season, German goalkeeper Kevin Trapp joined PSG and became their first-choice keeper. Lacking playing time with PSG, Sirigu signed the contract with Sevilla on Friday, after passing the medical tests hours before.

Per the agreement between the clubs, PSG has not included an option for Sevilla to buy the player.

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