Monday Brief: 5 Things Traders Need to Know for Today

Warren Buffett's investing axioms come under fire, while traders eye a EUR/USD rebound after getting slammed this month.

Quote of the Day

Only those who will risk going too far can possibly find out how far one can go.”

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5 Things You Need to Know Today

Amazon Prepares for Drone Deliveries. You heard me right. They are testing the newest prototype of their drone delivery service (“delivered in under 30 minutes, unless attacked by birds”). Critics warn that the drones would be susceptible to weather events. And bird attacks. This video is pretty damn amazing.

40 Books Every Investor Should Read. Ok, I’ll be honest, I don’t think every investor should read those books. Maybe one or two on the list is indispensable. The truth is you don’t need to read any investment books. You can read these four trading rules from Warren Buffett and you’re good to go. As if Buffett’s investing strategy could be reduced to a set of rules.

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Warren Buffett’s Strategy, Reduced to a Set of Rules. Invest in companies with humble, debt-averse leaders. Invest in companies that are easy to understand and that have long-term prospects (what they’re selling is what people will keep wanting and needing for a long time). Invest in companies that have been posting solid performance for at least 10 years or more. Invest in stocks only if you can get a great deal on it. And then hold it forever. Those are his rules.

Warren Buffett’s Rules are B.S. Well, at least the part about buying and holding. Seriously, what regular investor has the necessary temperament to just sit on a position forever? Hardly any. It’s just not realistic. And it depends far more on timing than its proponents would claim. In short: the best investing strategy simply follows one rule: Don’t lose money.

Chart of the Day

The EUR/USD looks ready for a rebound. I’m watching for a buy trade up to the new monthly pivot.

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