Sunday, August 15, 2010

Mr Market

I came across a very interesting take on Metaphors for market , and this is what is says

Mr Market

"Warren Buffett was the first person that I heard refer to the market as Mr. Market. It just hit me as the most accurate assessment. Trading is still predominantly male. And thus Mr. Market became my favorite metaphor for the market.

My sister has had to listen to countless hours of my trading trials. (which should qualify her for sainthood). She was well aware of my proclivity to call it Mr. Market. One day she told me, “It’s like you’re in a bad relationship with the market. He’s treating you like crap, doesn’t really care if you exist, does his own thing, and lies to you. Dump Him!” Brilliant. And the golden rule of trading appears in another form.

My Golden Rule in trading is “Dump Him!” – aka “Cut your losses short.”
"

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