To beat your neighbour’s ROI, invest in bonds

Once a trader has spent sufficient time in the markets and seen at least two cycles of boom and bust, he understands the virtue of patience and capital preservation.

As a student I watched the Hollywood 1987 blockbuster “Wall Street” with fascination. A young Michael Douglas’s “Greed is good” had become a catchphrase for us students. As was his dialogue “Lunch is for wimps.” It brought across the sense of urgency in a trader to get rich quickly. I had started trading in 1986 and I wanted to emulate Gordon Gekko the character that Douglas played. Every trader tries to remove speed breakers along his trading

To beat your neighbour’s ROI, invest in bonds

While the lure of going all-in on equities may seem irresistible, it can prove to be a trader’s undoing when things go badly wrong, as they often do on the Street

Once a trader has spent sufficient time in the markets and seen at least two cycles of boom and bust, he understands the virtue of patience and capital preservation.