How to Speculate like a Successful Trader

You want to learn how to speculate?

Jesse Livermore is your guy.

He is one of the most methodical speculators—a real advantage in an area where adrenaline kicks in frequently.

Speculation differs from investment. Investors buy stocks looking for high-quality companies with long-term potential, while speculators only look for opportunities where significant price movements are likely (Investopedia).

As Keynes said:

“Speculation is knowing how the market will move before it does.”

Scenario Building, Contingency Planning, & The Industries of The Future

My boss says he somehow always gets into the worst, most unimaginable scenarios, so: “We not only have Plan A and Plan B, but up through Plan E.”

Today we’re featuring The Industries of the Futurescenario building, and contingency planning.

A Business Book or a Crystal Ball?

BoostCompanies May Book Feature

Here’s Guerric’s second contribution to Above the Trend. The book he selected for you is about looking above the trend:

“Business books are about theory. This one is about the future.

Recent innovations – robotics, genomics, cyber attacks, big data – are making the future unfairly distributed and hard to predict.

Business Ecosystem: Creating an Economic Moat

Business ecosystem is an important concept in marketing strategy.

Why?

Being part of an ecosystem boosts both innovation and growth.

(1) It opens many doors for innovation by preventing from having to reinvent the wheel.
(2) It’s a springboard for reaching new audiences.

Building a Business Ecosystems as Competitive Advantages

Leading an ecosystem is the dominant form of competitive advantage in high-tech. It helps tech companies create what Warren Buffett calls an ‘economic moat‘.

I love Buffett’s medieval metaphor.

What does it mean?

How to use S-curve Chart to Predict Tesla Motors’s Future

Visual thinking is useful to understand or to explain complex information. Here I used a simple tool to analyse a possible future for Tesla Motors.  I used the S-curve to visualise my understanding of what can happen to Tesla. Of course, there are a lot of other ways to illustrate our understanding of information.

How to use an S-curve

As entrepreneurs or investors, we are looking for innovation. While entrepreneurs are challenging technological stagnation, investors are allocating their capital to boost proven innovative ideas. The key is to anticipate the future. Using the S-curve helps to find out what can happen next.

Manage Your Future Success using Feedback Analysis

Happy New Year 2015! This is now the traditional moment where everyone thinks about what is going to happen in the next 365 days or 8,760 hours. (If you sleep 8 hours per night, this means 5,840 hours to have fun and create new thing). In this article I will explain a method to set a feedback analysis in order to assess what are your strengths and weaknesses. I also give you a spreadsheet template that will help you to set your New Year’s goals and assess your results.

‘If You Can’t Measure It, You Can’t Manage It.’

How to Facilitate the Creation of Companies and Promote a Liberal Economy

When we speak about entrepreneurship, we all tend to focus on the fanciest of the adventure: growth, success, raising money. Yet, we all have to start at the same stage: incorporating a company. This requires some legal knowledge. Most of the time, a lawyer will be in charge of this part. But having general knowledge of what you can do is a valuable asset.

The following is a guest post by Jonas Habert. Jonas explains us how to avoid strict legislation when we have to set up a company.

[Enter Jonas Habert.]

Importance of Reliable Financial Statements: Tesco Case

Stock price of Tesco PLC recently dropped. The reason? Its accounting reports lacked reliability regarding its expected revenues. This affair illustrates the importance for companies to have clear and reliable accounts. As a result, you should always check that the auditor’s opinion in the annual reports is clean.

Tesco’s annual report impacted its stock price

Tesco has to deal with uncertain revenues. Tesco takes advantage of its direct contact with customers and gets extra incentives from its suppliers—brands like Coca-Cola or Pepsi—that are distributed within its stores. Suppliers pay the so-called rebates when a certain level of sales is hit. Because Tesco cannot predict if a determined level of sales will be hit, it cannot determine how much it will receive from these rebates. So a part of Tesco’s revenues is an approximation.

Real Difference Between Bonds and Stocks

In Finance 101, you learn that the capital market is broken down in two kinds of investment products: stocks and bonds. Bonds deliver fixed returns, while stocks deliver variable returns. Then everyone asks: ‘Great. Then which one offers the highest returns?’. It is a fair question. You invest money because you want to make some more.

Professionals agree on saying that stocks outperform bonds on the long run. If it is sure that stocks will outperform bonds, why do we bother with bonds? The problem is that nobody agrees on assessing what is ‘the long run’.

12 Investment Principles that Will Make You a Better Investor

How to Trade in Stocks* is a great autobiography that plunges you into Livermore’s life. Jesse Livermore was a famous and successful speculator. He dedicated his life to speculating and decided to teach what he learnt by writing a book.

Jesse Livermore

If I were you, I would trust this guy.

Livermore delivers sounded principles that are useful teaching for investors. This article shares with you my analysis of some principles I find really important. Although everyone has his own investment style and rules, I strongly believe successful investors widely respect the following principles.

What does the Crisis of 2008 Teach Us on Investing?

If you want to understand the FinTech Revolution, there are two events you cannot overlook: the dot-com bubble and the crisis of 2008. I wrote about the dot-com bubble after reading Easy Money by Philip Coggan. Today, I want to share with you what I learnt about the crisis of 2008 by reading The Fearful Rise of Markets: Global Bubbles, Synchronized Meltdowns, and How To Prevent Them in the Future by John Authers.