On Gerald Loeb, Quotes and Guide on Trading and Investing | Exploring Markets

On Gerald Loeb, Quotes and Guide on Trading and Investing

Gerald Loeb is a famous trader and investor who was profoundly influenced by the 1929 stock market crash. His wealth was destroyed during the Great Depression, and as a result so was his investment and trading strategies. He believed that the market was too risky to hold stocks for the long-term. 

Loeb's book, The Battle for Investment Survival, was a best seller during the Great Depression. Here are some of his viewpoints and quotes:
  • The difference between the investor who profits at year end and the one who does not is a matter of one's ability to capitalize on successes and curtail failures.
  • Public psychology is the most important single factor in the markets.
  • Psychology is just as much of a contributing factor to prices as inflation or deflation. Psychology often times leads the trend or price movement itself.
  • You don’t need analysts in a bull market, and you don’t want them in a bear market.
  • What everyone else knows is not worth knowing.
  • Stocks are always overvalued in Bull market and always undervalued in a Bear market.
  • The best stocks will always seem overpriced to a majority of investors.
  • Expectations, not the news, moves the market.
  • Analyze stocks: Quality/balance sheet, price, and trend. 
  • Stocks act like human beings and go through the same stages and phases as people. This means that there is infancy, growth, maturity, and decline in stocks just like there are in people. 
  • Always sell when you start patting yourself on the back for being smarter than the market.

"Profits can be made safely only when the opportunity is available and not just because they happen to be desired or needed. ...Willingness and ability to hold funds uninvested while awaiting real opportunities is a key to success in the battle for investment survival."

“The greatest safety lies in putting all your eggs in one basket and watching the basket.”

“Opportunity is always here. Everything is always changing.”