Mac Murray

Be Careful Who You Listen To

SCEPTICAL

“The leading cause of financial disablement is the belief that you can rely on the experts to help you. Typically, these so called experts are not traders.”

— Michael Marcus, Market Wizards

When it comes to trading, my criteria for screening who I do and don’t consider input from is very simple:  I listen to world class fund managers who’ve been around at least 20 years.  I don’t listen to anyone else.  If you don’t fit this description, rest assured I won’t listen to you either.  No offense, my friend, but why should I?

Go back and review ‘Riding Giants’.  In all the detail—identifying big waves, entries, exits, controlling risk—did you notice what was purposely absent? Nary a peep on news, analysts, and broker recommendations.  Meanwhile, fundamental analysis has become so problematic, it deserves a chapter of its own.  See The Reluctant Technician: Death Toll for Fundamental Analysis?

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DANGER NOISE HAZARD

Controversial, to be sure.   Since I myself hope to be a world class fund manager with a lifespan over 20 years, who else would you suggest I listen to?

By deploying a screening device as simple—and rigorous—as this, it’s remarkable how few people remain who deserve our attention.

I’m convinced that in order to have even a ghost of a chance at succeeding as a trader or fund manager,  you must develop a talent to ignore most people.  Mind you, I’m not encouraging you to be a jerk.  What I mean is, when it comes to trading, you need to develop a highly refined ability to shut off or screen out perhaps 98% of all the information screaming for your attention.  Unnatural as this is, precious few people can pull it off.  Indeed, even few professionals are capable of doing this. So if the idea seems daunting, not to worry.  Part of my role is, well,  to ignore people for you.

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Just why are conventional sources of investing advice rigorously excluded from our investment method? See below:

Turn Off the News

Analyze This

Your Average Broker Couldn’t Be A Trader In A Million Years

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On the other hand, if you’re wondering what kind of individual would measure up to our rigorous Be Careful Who You Listen To standard, see our Great Investors Hall of Fame.  And be inspired!

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