Trading
I lie to statistics!
By Bully The Bear  •  March 31, 2008
By: La Papillion Didn't know that my post on 'Statistics lie!' generated quite a healthy discussion on what is fair and what is not. My aim of the post is to highlight the fact that statistics are used to show and highlight what the person intends to say - or to add weight to what had already been said. As such, there really is no fair way to represent statistic without the risk of misleading someone. Though I say that, there are plenty of ways to confuse and obfuscate the casual reader and it is these that we must really be careful. A case example to note: There are people who say buy and hold is good. Warren Buffet buys and hold, and he is a good example of person who buys and holds stocks. To add weight to this statement, the person might quote him saying that he said his timeline for holding stocks is forever. But the fact is that Warren Buffet didn't buy and hold ALL his stocks forever. And those who recommend the buy and hold strategy sometimes forgot to mention buying GOOD COMPANIES at FAIR price with a MARGIN OF SAFETY. Also missing is that one must check and update if the reasons for buying it in the first place is still there.
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By Bully The Bear
La papillion is french for butterfly. This blog chronicles my journey from an amateur in the stock market to where I am today. Have I turned into a beautiful butterfly? I don't know, but I think my metamorphosis is still on-going now :)
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