On Dreams of Memes, Gamestop, and Inequality

Any moment might be our last. Everything is more beautiful because we’re doomed. You will never be lovelier than you are now. We will never be here again.

Homer, The Iliad

Buy Happy Sell Sad was started over 4 years ago in recognition of the emotional nature of free markets. My goal, although lofty, was to help bring the humanity back to economics, investing and finance. While I have always strived to take a lighthearted approach to markets, satirizing our fragile inclinations to inflate expectations and behave irrationally, the recent return of market volatility and subsequent rush of optimistic sentiment has made the need for emotional investing even more salient.

Continue reading “On Dreams of Memes, Gamestop, and Inequality”

Bag Holding, Real Investors Cry

“We must learn to live together as brothers or perish together as fools” – Martin Luther King. Jr

An important aspect of trading emotionally is valuing integrity and morality. An emotional trader must, above all else, think of the repercussions their investments may have on the world at large. Could you really sleep at night knowing that you are personally funding terrorists or child exploitation? Continue reading “Bag Holding, Real Investors Cry”

Technical Analysis, The Parable of John

“Analysis is like a lobotomy” – David Byrne

In the run up to the housing crisis in 2008, real estate was an incredibly profitable investment. A sector many of us were envious of, several partners left their cushy corporate jobs in order to manage their real estate assets full time. John, a senior partner at the time, ended up selling his business, a conglomerate of apartment complexes, and returning to the firm shortly before the financial downturn. At the time, we were all confused. Rumors abounded of, perhaps John’s wife had been sleeping with Ben from accounting again. Had John lost his mind? Perhaps John was dying. Having sat down with John to discuss his return, and as the office would later learn, John explained how he returned in order to be closer to his girlfriend who, unbeknownst to his wife, had recently given birth to a baby boy. John was the father. Continue reading “Technical Analysis, The Parable of John”

It’s Called Learning, Not Losing

“Your mind will answer most questions if you learn to relax and wait for the answer” – William S. Burroughs

While a typical trader may use stop losses or sell limits, the emotional investment philosophy says bullshingles to such strategies. A famous decision maker once posited that when trading on emotion, only losers would take losses. In other words… Continue reading “It’s Called Learning, Not Losing”

Show Me The Yellow – The Importance of Color in Investing

“Colors, like features, follow the changes of the emotions” – Pablo Picaso

Human psychology is augmented by modern life via a continuous positive feedback loop. (And one must remember that if not for the human psyche, we would be neanderthals).  What else is there that sets man apart from monkey – proclivity for tree climbing notwithstanding? Observe the sociopath; one who is incapable of feeling and unable to exhibit emotion, a distinctly inhuman being, masquerading in the skin-sack of human form. Given a thick coat of fur and tough skin, little would be left to distinguish such a beastly creature from a member of the ape family. It is with emotion as the primary driving force that humanity adapts to the modern jungle. Mind melding with steel we have adopted unfamiliar dwellings and continuously altered our surroundings to fit our changing needs. Perhaps the most obvious example of human psychology assimilating modern life can be found in an all too commonly overlooked invention, the traffic light. Continue reading “Show Me The Yellow – The Importance of Color in Investing”

No Money, No Food

“Tell me what you eat, and I will tell you what you are” – Anthelme Brillat-Savarin

Sure, you’ve heard a million times, especially around the holidays. Millions of Americans make the same vow. Diet and exercise. But what if I told you that diet and exercise isn’t the answer? Continue reading “No Money, No Food”

Listen to Your Gut, Investing Should be Fun

“In any investment, you expect to have fun and make money” – Michael Jordan

Or, perhaps fun is not the most appropriate word – don’t worry, we can always hire another seamstress to make new banners – but truly, trading should be exhilarating, exciting, and euphoric. Continue reading “Listen to Your Gut, Investing Should be Fun”

The Case for Investing Emotionally

“Your intellect may be confused, but your emotions will never lie to you” – Roger Ebert

A spectre is haunting the world of investing. A ghost of Christmas past. A 13,000 pound African bush elephant squat squarely in all of our minds. That unavoidable, unassailable, metaphorical large gray mammal is human emotion. Continue reading “The Case for Investing Emotionally”