In this episode, Mark talks about how you would not consider making decisions based on charting a function of investing - it's a function of speculation. You either use qualitative or quantitative processes that help make investment decisions. Make sure whatever you are using is proven. Focusing on returns will distract investors from making good, long term decisions. There is nothing wrong with speculating, but it's highly risky. Sometimes it works out other times it doesn’t. He also talks about when do you should take a profit or completely sell a position and what kind of impact it has on the portfolio? You must have a balance of where you’re getting your information from. And always be prepared for a correction!
January 9, 2017