It is actually. Also, there's another one called "compound effect" which I think they are the same thing with different names.
Right now I'm reading The Fortune Sellers. It's a healthy reminder that nobody knows the future no matter how authoritative or logical sounding the argument is for interest rate changes, impending recessions (or not!), all time highs or lows, nobody really knows and the track records of prognosticators from the lowliest newsletter author with 53 subscribers to the Fed chairman himself are little better than chance. Best thing to do is just turn off the talking heads, unsubscribe from the blogs, take reasonable risk management precautions, and remain adaptable to changing circumstances. Will rates change? Sure. Will a crash come? Sure, eventually. There will of course be a recession and it could be next month or.. next decade. Like Lynch said, more money has been lost preparing for a downturn than in a downturn. When the trend is up, buy. When the trend gets to the bend at the end, get out. As simple as it is. Alright I'll get off the soapbox now. And there's nothing wrong with having an opinion on the resolution of a chaotic complex system like the economy or market, just assume your opinion (and everybody else's) is mostly wrong and don't bet the farm on it. It's a good (albeit not perfect) book, check it out.
%% Dollars+ $ence, by Larry Burkett, edited by Adeline Griffin. Alphabet arranged book . Dave Ramsey's mentor more or less.
Another thrift-shop find I've had collecting dust. Time to see if there is anything left to learn in the world of options...
To update you on the Financial Times 'Options' book I posted earlier, I was quite surprised to learn a few things, and it was a very good recap for me. Lenny Jordan was a market-maker for both the CBOT and LIFFE, as well as a trader at other places, so he does seem to know his shit. And now, I will try to start the following book for the weekend:
Cool! How you find these books? I'm sure there are thousands of such a book out there but how do you identify good ones?
I visit a lot of thrift stores and go right to the business section where the books are sold. Most I purchase at Savers/Value Village (ticker: SVV) Right now, I finished the 101 Option Trading Secrets. Funny, I did not really feel I learned any secrets But, some of it was an interesting re-cap, though some may argue against them: Sell in May and go Away: ...In fact, almost all stock market crashes occurred in October, including the crash of 1929, the crash of 1987, the crash of 1989, and the crash of 1997. No question that the best time to buy stocks is near the end of October. One reason is that tax-loss selling by institutions occurs in October. Also, stock prices tend to fall in December due to tax-loss selling by individual investors. Another important seasonal tendency that has existed since the 1920's is the end of the month phenomenon. Stock prices tend to rise on the last trading day of the month and the first four days of the month. In fact, if you had invested in the stock market averages only during those five days since the 1920's, you would have shown better gains than if you had been in the market the whole time. On those five magical days, stock prices rise 70% of the time during bull markets and 50% of the time during bear markets. Why? One reason is that pension and market fund managers receive distributions from employee paychecks at the end of the month and must invest those funds. Another seasonal tendency is that stock prices tend to rise on the day before a holiday. Why? First, professionals do not like to hold short positions over a holiday, especially if it includes a weekend, and will buy back their position before the holiday. In addition, many professionals start the holiday early, leaving only small investors who tend to buy instead of sell stock.
I like the Wim hof note on the book: "I highly recommend this book." How is it? Tell me more about it if possible.