Hello from Blue Ocean Strategy! We recently listened to the podcast “Masters in Business: Michael Covel” on Barry Ritholtz’s Big Picture (January 13, 2016). We really appreciate when people take the time to mention blue ocean strategy and as a thank you, we share the best content with our growing global audience via our website, social media accounts and email newsletter. We thought our audience would enjoy this piece and so we have already mentioned and posted a link to it in our eLibrary – here.
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With appreciation,
xxx from the BOS Team
Thanks! I hope to have Professor Kim on my podcast soon. Let’s make that happen.
A listener passed this along. An interesting post from Finance Trends (source):
Valeant Pharmaceuticals (VRX) is now big headline news, as the stock’s downward slide continues to punish investors, big and small.
Hedge fund manager, Bill Ackman of Pershing Square was reported to have lost $1 billion in a single day due to VRX’s latest plunge. Institutional ownership of Valeant’s stock was very widespread. As mentioned in our last post, a huge number of hedge funds and mutual funds owned big positions in VRX. Smaller investors may also be feeling the hit in their personal investment accounts or in their pension funds’ returns.
Let’s not focus too much on the investors who were unfortunate enough to get burned in this stock crash. The media and the investing world are already having a field day with this debacle. Instead, let’s take a fresh look at the chart to better understand why so many savvy investors were hurt in this decline.
As you can see in this updated daily chart (see below), VRX had been showing signs of distribution (professional selling) for weeks heading into the fall of 2015.
After breaking down through its 200 day moving average (the red line), the stock moved sideways for a time before plunging through the $150 level. Here’s where the decline really accelerated and volume ramped up.
Towards the end of 2015, we saw a nice rebound in VRX and a bit of chatter about how “everything would be fine” and “here is a smart place for big investors to average down and buy more”, etc. Well, as recent events have shown us, that is not exactly how things played out for the investors who stubbornly held on to their bullish “thesis” for VRX.
At the start of this week, VRX was trading near $68. By Tuesday, the stock had plunged by over 50% to close at $33.49. As of today’s close, VRX is trading at $29.65, 60% lower from our previous Valeant (VRX) update at the end of February.
If you didn’t read my last post on VRX, go back and check out the closing section, “How to avoid disastrous stock declines”. If you know someone who is stubbornly holding on to major losses in their portfolio or trading account, share the article with them. While nothing is foolproof in investing, these simple ideas may help you pare or avoid the disastrous losses that can ruin any investor, big or small.
“The most important rule of trading is to play great defense, not great offense. Every day I assume every position I have is wrong. I know where my stop risk points are going to be. If they are going against me, then I have a game plan for getting out.” – Paul Tudor Jones, via Darvas Trader.
My guest today is Catherine Stott, the author of, “Hypnotrading: A practical guide to using hypnosis and NLP to improve your trading performance: Self-hypnosis and psychotherapeutic techniques for traders.” Catherine believes that hypnotherapy and neuro-lingustic programing can help traders defeat inner challenges and become more successful. She got started working with traders after helping a friend, who happened to be a trader. He helped her understand the world of trading a bit more throughout their sessions and this ignited her interest deeper. She has been helping traders for years but didn’t start HypnoTrading until 2014.
The topic is her book Hypnotrading: A Practical Guide to Using Hypnosis and NLP to Improve Your Trading Performance.
In this episode of Trend Following Radio:
Stress vs. anxiety
Meditation vs. hypnosis
Being in a relaxed state
Negative self talk
Fear of success
Modeling
P-A-C-E-R
Luck and expectation
Defining goal setting
“It’s about your experience rather than your academic ability, and your drive and thrive for learning and achieving.” Catherine Stott
I’ve been listening to your podcasts. Couple of things:
• Swearing… you swear less than me and I ain’t bad. I wouldn’t worry about it.
• I find everything I’ve listened to universally informing and amusing. If it wasn’t entertaining I’d have problems listening.
• I actually find your monologues more engaging than the interviews and they’re great.
• I started to listen when you were mentioned by Simon Black, and another person/group I read… Bill Bonner’s group. At about the same time.
On the podcast you offer to help me start. Please do! I don’t think I’d want to live in Saigon, but touring the area in a sail boat would be a wonderful way to spend a Wyoming winter. Assuming I can avoid pirates!
I thought you might like this. I found a cute little paragraph about trend following (use of technical analysis) in CFA level 2 Schweser notes. Love the last sentence:
Cheers,
Peter Schenk, Portfolio Manager, CIM
Trend Following Confusion
Thanks. Not surprising. Misinformation on top of misinformation.
Please enjoy my monologue Powerball Manipulation with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.
In this episode of Trend Following Radio:
Trump as President
Lottery and Powerball
Changing American politics
Getting something for nothing
“Gambling is a tax on stupidity.” – Samuel Johnson
