I never argue with the tape. To be angry at the market because it unexpectedly or even illogically goes against you is like getting mad at your lungs because you have pneumonia.
Personally I don't think day traders are speculating, because traditional speculation requires some market knowledge. They are, instead, gambling, which doesn't.
The stock market has always had its own meter. Sometimes it's ahead of itself, sometimes it's behind itself. A broken watch is right twice a day.
Mr. Market is kind of a drunken psycho. Some days he gets very enthused, some days he gets very depressed. And when he get really enthused you sell to him, and if he gets depressed, you buy from him. There's no moral taint attached to that.
The intelligent investor should recognize that market panics can create great prices for good companies and good prices for great companies.
The dumbest reason in the world to buy a stock is because it's going up.
Individual investors predictably flock to stocks in companies that are in the news.
There is always something to worry about. Avoid weekend thinking and ignoring the latest dire predictions of the newscasters. Sell a stock because the company's fundamentals deteriorate, not because the sky is falling.
The model I like to sort of simplify the notion of what goes on in a market for common stocks is the pari-mutuel system at the racetrack. If you stop to think about it, a pari-mutuel system is a market. Everybody goes there and bets and the odds change based on what's bet. That's what happens in the stock market.
The genuine investor in common stocks does not need a great equipment of brain and knowledge, but he does need some unusual qualities of character
