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Success is a PROCESS. Expertise is developed over time. No one is born an expert. “Talent is Overrated” by Geoff Colvin “Outliers” by Malcolm Gladwell Focus your energy on the PROCESS of improving, instead of worrying about your short term results. Thinking about market relationships.
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Success is a PROCESS • Expertise is developed over time. No one is born an expert. • “Talent is Overrated” by Geoff Colvin • “Outliers” by Malcolm Gladwell • Focus your energy on the PROCESS of improving, instead of worrying about your short term results
Some Ideas… • Start with big picture relationships • How do oil companies trade in relation to the price of oil? • How to gold mining companies trade in relation to the price of gold? • Can you rank their relative sensitivities to these commodity prices? Do they have similar relationships?
Patterns in Earnings Growth • CANSLIM – Methodology developed by William O’Neil of Investors Business daily • Current earnings growth • Annual earnings growth • New products, services or management • Supply/Demand as measured by trading volume • Leader/Laggard • Institutional Ownership • Market Index Direction
Don’t assume anything • Does P/E matter? • Is past performance indicative of future direction? • Does diversification work? • Bull markets? • Bear markets?