Ep. 362: Speculation Wins Today with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Three Golden Rules of Speculation
Ricardo: Never refuse an option when you can get it. Number two, cut short your losses. Number three, let your profits run on. By cutting short ones losses, Mr. Ricardo meant that when a member had made a purchase of stock and prices were following, he ought to resell immediately. These are indeed golden rules and may be applied with advantage to innumerable other transactions than those connected with a stock exchange. That is from 1830. I don't have the exact date for that one in front of me, but if you call me wrong, I'm almost positive it's 1830. The common delusion that expert knowledge is not required in speculation has wrecked many fortunes and reputations
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