The Compound and Friends Never Buy New Lows, Never Short New Highs
20 snips
Mar 25, 2022 
In this discussion, Nick Colas, Director of Research at DataTrek and veteran Wall Street analyst, shares insights from his three-decade career. He dives into retail investor sentiment, contrasting it with institutional trends amidst economic uncertainty. The conversation explores the impacts of rising inflation on the S&P 500 and the evolving landscape of bank stocks and technology investments. Colas also sheds light on the intersection of quantum computing and cryptocurrency, and the future of the electric vehicle market, emphasizing the need for innovative solutions.
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Working for Steve Cohen
- Nick Colas worked at Steve Cohen's SAC Capital from 1999-2001.
- His goal was to make $1000 daily, increasing to $2000 after two weeks, showcasing SAC's focus on consistent profits.
Trading is Like Life
- Analogy between trading and life: Observing someone's trading reveals more about them than their spouse knows.
- Intuition in trading, like in life, often precedes intellectual understanding, highlighted by the Iowa Gambling Test.
Price Leads Fundamentals
- In the stock market, prices often reveal information before fundamental analysis does.
- Avoid buying at new lows and shorting new highs, as price trends often indicate underlying factors.
