Max Heinrich studied the principles of the Swiss Bankers for making money. He then published a great little book called "The Zurick Axioms".
In summary form, the axioms are:
On Risk
* Worry is not a sickness but a sign of health - if you are not worried, you are not risking enough.
* Always play for meaningful stakes - if an amount is so small that its loss won't make any significant difference, then it isn't likely to bring any significant gains either.
* Resist the allure of diversification.
On Greed
* Always take your profit too soon.
* Decide in advance what gain you want from a venture, and when you get it, get out.
On Hope
* When the ship starts sinking, don't pray. Jump.
* Accept small losses cheerfully as a fact of life. Expect to experience several while awaiting a large gain.
On Forecasts
* Human behaviour cannot be predicted. Distrust anyone who claims to know the future, however dimly.
On Patterns
* Chaos is not dangerous until it starts to look orderly.
* Beware the historian's trap - it is based on the age-old but entirely unwarranted belief that the orderly repetition of history allows for accurate forecasting in certain situations.
* Beware the chartist's illusion - it is characteristic of human minds to perceive links of cause and effect where none exist.
* Beware the gambler's fallacy - there's no such thing as "Today's my lucky day" or "I'm hot tonight".
On Mobility
* Avoid putting down roots. They impede motion.
* Do not become trapped in a souring venture because of sentiments like loyalty and nostalgia.
* Never hesitate to abandon a venture if something more attractive comes into view.
On Intuition
* A hunch can be trusted if it can be explained.
* Never confuse a hunch with a hope.
On the Occult
* If astrology worked, all astrologers would be rich.
* A superstition need not be exorcised. It can be enjoyed, provided it is kept in its place.
On Optimism & Pessimism
* Optimism means expecting the best, but confidence mean knowing how you will handle the worst. Never make a move if you are merely optimistic.
On Consensus
* Disregard the majority opinion. It is probably wrong.
* Never follow speculative fads. Often, the best time to buy something is when nobody else wants it.
On Stubbornness
* If it doesn't pay off the first time, forget it.
* Never try to save a bad investment by "averaging down".
On Planning
* Long-range plans engender the dangerous belief that the future is under control. It is important never to take your own long-range plans or other people's seriously.
jfi
dub
- Forums
- ASX - General
- ASX
- the zurick axioms .... for investing
the zurick axioms .... for investing
-
- There are more pages in this discussion • 2 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add ASX (ASX) to my watchlist
(20min delay)
|
|||||
Last
$63.84 |
Change
-0.070(0.11%) |
Mkt cap ! $12.37B |
Open | High | Low | Value | Volume |
$63.88 | $63.92 | $62.85 | $12.79M | 201.0K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 14 | $63.56 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$63.86 | 2974 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 14 | 63.560 |
1 | 13 | 63.540 |
1 | 1109 | 63.520 |
2 | 1123 | 63.480 |
1 | 344 | 63.460 |
Price($) | Vol. | No. |
---|---|---|
63.900 | 512 | 1 |
63.920 | 929 | 1 |
64.000 | 667 | 6 |
64.050 | 300 | 1 |
64.100 | 578 | 1 |
Last trade - 16.10pm 04/10/2024 (20 minute delay) ? |
Featured News
ASX (ASX) Chart |