Archive for the ‘Definitions’ Category

A Wall Street Definition: Challenge

November 17th, 2011 Comments off


1. a demanding task that calls for extraordinary effort, intense concentration, and refined skill in order to succeed.
2. an opportunity that tests one’s ability to perform well under pressure.
3. the essential gift that games of competition provides enlightened players, including those savvy independent investors who choose to play Wall Street Craps for fun and profit.


“To the extent that a person is obsessed with the possession and accumulation of money to the exclusion of how money is acquired – when the satisfaction in having money submerges the satisfaction derived from the process of making money – then it can be said that the person has an unhealthy attachment to money.”

Herb Goldberg and Robert T. Lewis ~ Authors of Money Madness

Categories: Definitions, The Winner's Journey Tags:

A Wall Street Craps Definition: Sidelines

November 17th, 2011 Comments off


1. a space where participants of a competitive sport remain apart from the field of play.
2. a location outside the limits of a playing field or court which is occupied by spectators and/or inactive players.
3. a neutral position where investors choose to observe rather than participate in the current action of the stock market.


“It’s important to distinguish between respect for the market and fear of the market. While it’s essential to respect the market to assure preservation of capital, you can’t win if you’re fearful of losing. Fear will keep you from making correct decisions.”

Howard Seidler ~ Professional trader and money manager

Categories: Definitions, Sideline Adjustments Tags:

A Wall Street Craps Definition: Capital Preservation

November 17th, 2011 Comments off

capital preservation:

1. a conservative investment objective of avoiding asset value loss.
2. an investment goal in which protecting the investor’s principle from loss is the primary concern.
3. a wise and prudent reason for selling underperforming stock market positions when the disempowering emotions of hope and greed are more likely to cause amateur investors to procrastinate and do nothing.


“Perhaps my number one rule is: Don’t try to make a profit on a bad trade, just try to find the best place to get out.”

Linda Bradford Raschke ~ professional stock trader

Categories: Definitions, The Selling Test Tags:

A Wall Street Crap Definition: Stock Market Rally

November 17th, 2011 Comments off

stock market rally:

1. a phase in which stock investments in general go up in price.
2. the shorter-term trend of the stock market when the major averages or indices advance.
3. a period of time when savvy investors profit from timely, well-diversified stock purchases on the long side of the market.


“Trade with the trend. ‘The trend is your friend.’ This is probably the most well-known rule of all. But as simple as it seems, it is easier to violate than you might think. “Remember, there are three trends – the short-term, the intermediate term, and the long-term. Each trend is moving all the time and may be going in the wrong direction opposing the other two…Know which trend you are involved in and its correlation with the other two.”

Victor Sperandeo ~ professional stock trader

Categories: Definitions, Trading Positions Tags:

A Wall Street Craps Definition: Stock Market Timing

November 17th, 2011 Comments off

stock market timing:

1. the process of selecting the best moments to enter and leave a person’s positions in the stock market.
2. the attempt to buy investments when they are about to increase in value and, conversely, to sell investments before they decrease in value.
3. one of the most critical decisions that a player must consistently do well in order to play Wall Street Craps for fast money with less risk.


“Markets top not because of smart sellers it’s just an absence of buying. And conversely at markets bottom, markets bottom not because of smart buyers it’s an absence of selling. So that’s our whole thesis and that’s our approach to analysis.”

Tom DeMark Interview 1-20-2012 on Bloomberg TV’s “Street Smart”



Categories: Definitions, Stock Market Timing Tags:

A Wall Street Craps Definition: Market Analysis

November 10th, 2011 Comments off

market analysis:

1. the ability to decipher the clues surrounding the stock market in the effort to make more intelligent investment decisions.
2. the process of evaluating past and present evidence related to the stock market and making high-probability correlations to future price performance.
3. the key prerequisite to timing your stock market moves successfully when playing Wall Street Craps for fast money with less risk.


“No matter what the stock market does, people want to know how it did it, why it did it, and why it didn’t do something else.”

Richard Saul Wurman, Alan Siegel, & Kenneth M. Morris

Categories: Definitions, Market Analysis Tags:

A Wall Street Craps Definition: Game

November 7th, 2011 Comments off


1. a contest or sport involving skill, chance, and/or endurance that is governed by a set of specific rules.

2. a competitive activity where skill, strategy and luck contribute to outcomes, and which serves as an amusement, diversion, or interesting pastime.

3. a simple, yet profound way of understanding how investors invest their money in a challenging activity requiring a set of knowledge, skills and strategies that need to be understood and mastered in order to come out a consistent winner.


“Investment is a game, and calls for the same qualities required to win at any game. You have to love the game and have an intense desire to win. Whatever strategy you follow, you should follow three rules: Be thorough, tough-minded, and flexible.”

John Train ~ Author of Money Masters of Our Times (2003)

Categories: Definitions, The Investment Game Tags:

A Wall Street Craps Definition: Stock Market

November 7th, 2011 Comments off

stock market:

1. a regulated exchange where public securities are traded between buyers and sellers.

2. also referred to as “Wall Street,” which is the actual location in New York City that is regarded as the financial center of America.

3. a financial game of risk and reward that favors those who possess discipline, decisiveness, specialized knowledge, and keen awareness.


“I believe the true road to preeminent success in any line is to make yourself master in that line. I have no faith in the policy of scattering one’s resources, and in my experience I have rarely if ever met a man who achieved preeminence in money making – who was interested in many concerns.”

Andrew Carnegie ~ American industrialist & philanthropist (1835-1919)

Categories: Definitions, The Stock Market Tags:

A Wall Street Craps Definition: Asset Allocation

November 7th, 2011 Comments off

asset allocation:

1. the process of intelligent decision-making regarding the placement of financial assets for investment purposes.

2. the ability to move financial assets from one investment class to another, based on prudent risk/reward evaluations and individual investor objectives.

3. the critical decisions that savvy independent investors must make regarding where to put their money and in their proper amounts in order to play Wall Street Craps successfully over time.


“True diversification is hard to achieve. The major portfolio building blocks tend to move in the same direction at the same time. That severely limits the protection that diversification affords. Recognize that the building and deployment of cash equivalent reserves is probably your best diversification tool.”

Robert Metz and George Stasen ~ Authors of “It’s A Sure Thing” (1993)

Categories: Definitions, Money Management Tags:

A Wall Street Craps Definition: Diversification

November 7th, 2011 Comments off


1. the act of placing money in a number of different investments in order to reduce the risk of overall poor performance caused by having too much money concentrate in any one investment.

2. when investors spread money around in a variety of investment classes in an effort to create more safety and less volatility in their results.

3. what many part-time amateur stock players fail to create when they concentrate their bets on the stocks of too few companies, industries, or market sectors in the naïve effort to achieve greater financial gains.


“Behold the fool saith, ‘Put not all thine eggs in one basket’ – which is but a manner of saying, ‘Scatter your money and your attention’; but the wise man saith, ‘Put all your eggs in one basket and – WATCH THAT BASKET.’”

Mark Twain ~ American author & humorist (1835-1910)