Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20
Does the Stock Market Really "See" the Future? - 12th Sept 20
Basel III and Gold, Silver and Platinum - 12th Sept 20
Tech Stocks FANG Index Nearing Critical Support – Could Breakout At Any Moment - 12th Sept 20
The Tech Stocks Quantum AI EXPLOSION is Coming! - 12th Sept 20
AMD Zen 3 Ryzen 4000 Questions Answered on Cores, Prices, Benchmarks and Threadripper Launch - 12th Sept 20
The Inflation Mega-trend is Going Hyper! - 11th Sep 20
Gold / Silver Ratio: Slowly I Toined… - 11th Sep 20
Stock Market Correction or Reversal? The Jury Isn't Out! - 11th Sep 20
Crude Oil – The Bearish Outlook Remains - 11th Sep 20
Crude Oil Breaks Lower – Sparking Fears Of Another Sub $30 Price Collapse - 11th Sep 20
Inflation by Fiat - 10th Sep 20
Unemployment Rate Drops. Will It Drag Gold Down? - 10th Sep 20
How Does The Global Economy Recover After This Global Pandemic? - 10th Sep 20
The Best Mobile Casino - 10th Sep 20
QE4EVER! - 9th Sep 20
AMD Ryzen Zen 3 4800x 10 Core 5ghz CPU, Cinebench Benchmark Scores (Est.) - 9th Sep 20
Stock Traders’ Dreams Come True – Big Technical Price Swings Pending on SP500 - 9th Sep 20
Should You Be Concerned About The Stock Market Big Downside Rotation? - 9th Sep 20
Options Traders Keep "Opting" for Even Higher Stock Market Prices - 8th Sep 20
Gold Stocks in Correction Mode - 8th Sep 20
The law of long-term time preference and Gold ownership - 8th Sep 20
Gold Bull Markets: History and Prospects Ahead - 8th Sep 20
Sheffield City Centre Coronavirus Shopping Opera Ahead of Second Covid-19 Peak - 8th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Golf and Investing: Tin Cup Lessons

Commodities / Gold & Silver 2009 May 22, 2009 - 07:55 AM GMT

By: Steve_Selengut

Commodities

Benjamin Graham was an economist, financial analyst, and professional value investor. He was one of the first to advise investors to look beyond the media hype and confusion to find undervalued stocks that would become part of a diversified portfolio.


Roy McAvoy is a fictional professional golfer (in the 1996 film "Tin Cup") whose pride, ego, and stubbornness combined to let the U. S. Open championship slip through his fingers.

Graham developed his skills and understanding of the financial markets into a discipline that, most expert investors would agree, helps to minimize the risks associated with investing. McAvoy recklessly ignored the risks associated with visible hazards while he allowed his internal environment to bring a defeat he clearly had the skills to avoid.

For an endless variety of reasons "tin cup" amateur investors bring on their own demise by failing to minimize risks using well known basic techniques that are thoroughly documented and supported by sand traps full of statistical evidence. They hit driver with every selection--- it's the only club in their bag.

Institutional plus-handicappers defied the investment gods by developing derivative monstrosities. They now resemble depression era "tin cuppers", sitting crumpled by the curb, looking for government handouts to remove the snowmen from their investment product scorecards.

Some of the mightiest institutions have fallen because they disrespected the BING (Basic INvestment Guidelines). The investment gods are ticked.

In amateur golf, most of us are aware of the basic elements of the game and are all too familiar with our own personal, and seemingly unsolvable, shortcomings.

I invariably take all but the shortest irons back too far. My biggest head problem is the focus destroying "ageda" of the rude group behind us either hitting to close or impatiently taking practice swings just fifty yards back--- thinking that they are speeding up play in the process.

Knowing better, my course management often falls prey to McAvoyian exercises in futility--- the weekend's silly attempt at a Mickelson full swing flop shot over a palmetto guarded sand trap, for example, when a simple chip to the clear side of the green was so much more doable for a Sunday-15 handicapper.

Given a choice between safe and risky, I seem to choose risky every time--- but only on the golf course! I've not learned that a clear and calm bogey-every-hole objective produces far more pars (and fewer "others") than a par-every-hole goal that makes each second shot a masochistic head shaker.

I just don't play enough to master the safe approach--- something I've grown used to in investing because I do it every day. Knowing our own limitations should make things easier. Yeah, it should.

Investing is not as easy to master as many non-professionals seem to think--- and as even more commissioned professionals would like them to think. It is likely that most golfers fail to break 100 ninety percent of the time. Equity investors eventually lose money on their selections most of the time--- and mostly because they forget to take profits. Now there's a double-bogey off a perfect drive!

The most difficult aspects of golf and investing are similar: planning an asset allocation and investment course management, minimizing risk of loss with higher quality securities and taking hazards out of play by selecting the proper club, trajectory, or landing area, etc.

Managing your emotions during the post-birdie tee-shot or in the throes of a triple-bogey is a microcosm of the emotional control needed to ride the roller coaster produced by market, interest rate, and economic cycles.

Similarly, mastering the short game (where the most shots are wasted in chunks, skulls, and three-putts) is every bit as bottom-line relevant as fine tuning a trading strategy that operates realistically and profitably along side the short-term gyrations of the markets.

The parallels between golf and investing are many--- risk management is just the most obvious. Fore!

By Steve Selengut
800-245-0494
http://www.sancoservices.com
http://www.investmentmanagemen tbooks.com
Professional Portfolio Management since 1979
Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy"

Disclaimer : Anything presented here is simply the opinion of Steve Selengut and should not be construed as anything else. One of the fascinating things about investing is that there are so many differing approaches, theories, and strategies. We encourage you to do your homework.

Steve Selengut Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules