John ( Jack ) Bogle

“ Time is your friend; impulse is your enemy.”

“If you have trouble imaging a 20% loss in the stock market, you shouldn’t be in stocks.”

"When reward is at its pinnacle, risk is near at hand."

Personal Profile

Jack Bogle, born in Montclair, New Jersey, in 1929, graduated with a degree in economics from Princeton University in 1951. He learned the investment management business by working for financial advisor Wellington Management from 1951 to 1974 and founded Vanguard Group mutual fund company in 1974, becoming its CEO and chairman before retiring in 1999 from an active role in the company.

In "The Vanguard Experiment: John Bogle's Quest to Transform the Mutual Fund Industry" (1996), biographer Robert Slater describes Bogle's life as "evolutionary, iconoclastic and uncompromisingly committed to his founding principles of putting the interests of the investor first and constructively criticizing the fund industry for practices that run counter to low-cost, client-oriented mutual fund investing."

Bogle pioneered the no-load mutual fund and championed low-cost index investing for millions of investors. He created and introduced the first index fund, Vanguard 500, in 1976.
 In 1999, Fortune Magazine named Bogle one of the four “ Investment Giants” of the twentieth century.

Investment Style.

In simple terms, Jack Bogle’s investing philosophy advocates capturing market returns by investing in board-based index mutual funds that are characterized as no-load, low-cost, low-turnover and passively managed. He has consistently recommended that individual investors focus on the following themes:

1.       Minimizing the investment related costs and expenses.

2.       The productive economics of a long-term investment horizon.

3.       A reliance on rational analysis and an avoidance of emotions in the investment decision-making process.

4.       Use of index investing as an appropriate strategy for individual investors.

Publications

"Bogle On Mutual Funds" by John C. Bogle (1994)

"Common Sense On Mutual Funds: New Imperatives For The Intelligent Investor" by John C. Bogle (1999)

"John Bogle On Investing: The First 50 Years" by John C. Bogle (2000)

"The Little Book Of Common Sense Investing: The Only Way To Guarantee Your Fair Share Of Stock Market Returns" by John C. Bogle (2007)

"The Vanguard Experiment: John Bogle's Quest To Transform The Mutual Fund Industry" by Robert Slater (1996)

Benefit Of Investment in Stock Market

It’s very important to have savings along with various means to park it for growth. Here, the rate of returns plays the major role. It is notice that the rate of return from investment, in stock is comparatively higher but it also exposes us to the higher risks. So, the knowledge of market and which script to buy is necessary.
Years of experience has thought that one should not invest total capital into any one scheme or all the money in particular script ( not to put all the eggs in one basket ). In share market, capital should be invested in few scripts and not only one or two scripts.

Share market is one of the good avenues of investing and appreciating the capital. Here, common sense, Discipline and flexibility are the factors which are taken care of that can fetch handsome returns.
Many times, we hear that Mr. So and so has multiplied his capital 10 to 20 times in five to six years time. Along with, there are plenty of cases where people are ruined & have to sell off their houses too.

There are lots of factors affecting this market. We should be aware of these to ensure that we don’t turn up losers. The most dangerous style of trading is Day Trading which should be avoided ( Buy Day / Sell Today ). Next is dealing in futures which can also be dangerous Best and Safest is investment in A Group fundamentally sound Company’s script.

Note :
This does not means that you should not do Intraday / FNO but only do when you are well versed ( you know very well ) with the stock market.

Inflation

Inflation is the rate at which the cost of living increases and causes money to loose its value. In other words, it will not buy the same amount of good or a service in future as it does now or did in the past.

Why Investment is Necessary ?

In older days some where around 1920, when prices remained more or less constant, even if they did rise, It was just marginally so the impact on the cost of living hardly made any difference so

Savings and Investment

The money what is saved out of earning is called savings which are to meet future expenses. Instead of keeping the savings idle, it is advisable to use it to get good return on it in the future is known Investments.

The Easiest Way I Know to Make Money in Stocks

By DividendOpportunities.com

I call it the “apple tree” loophole. I think it’s one of the best ways I know to make money in the market, especially if you don’t want to fuss over your investments every day.

Understanding Signals of Market Crash & Sentiments of Retail Investors

You may have started seeing on lot of TV channels where people have started predicting new lower levels and the problem with such prediction is no one actually knows the bottom but are just making noise to get noticed.

What does the term term “Margin Trading” mean ?

Many times you would have come across a term Margin trading. What is trading on margin and how is it different from normal trading is what is explicated here.

ONLINE TRADING Do’s and Don’ts

Trading online has become very popular in today’s time when you just need a trading account and after that you can trade comfortably while sitting at your home. Apart from comfort of trade it provides various facilities like:

Stock Market Beginner’s Guide

Before investing, it is always wise to learn the Basics of Stock Market. We have compiled articles and tutorials on the Share Market Basics. Also included here explanation of Stock Market Terms

3 Simple Ways You Can Boost Your Success Rate When Trading Forex

Lots of people who trade forex will try out many different trading systems in order to find one that is consistently profitable. They will play around with many different indicators and become increasingly frustrated if they still

Automated Forex Trading System – Several Tips to Choose The Best One

Forex trading has a huge profit potential. Trader can manage his activity on a currency trading market by himself. He can make a couple trades per month or ten per day, whatever is comfortable for him. More and more

Reasons Why Money Making From Forex Trading and Gambling Are Not Same ?

I think everyone of us ever bought a lottery ticket or approached somewhat they call a “bandit.” I did… before I started my own “Forex way.” And still there is a single question I can watch us, the traders, arguing about:

Day Traders Lesson 10. The Essential Real-Time Trading Tool

Real-time traders live from moment to moment.

Such is the pull of a live data feed, it's often a challenge to see the big picture. But this you must do if
you want to survive and prosper. .

Day Traders Lesson 9. Get A Life

Do you know why you trade?

Is it the fun and excitement, the sheer nerve-jangling, adrenaline rush that comes from trading the
word's financial markets?

Day Traders Lesson 8. Less Is Definitely More

The best times to day trade are usually the first two hours after the open. Some traders also like to trade

the last half-hour before the close.

Day Traders Lesson 7. Mind Your Language

Try this experiment sometime:

Tell a friend to close her eyes and stretch her arm out wide. Now get her to think of the word "weak",

then press down on her hand. You'll notice her whole arm moves down easily.

Day Traders Lesson 6. Be Your Own Boss

You're the one in charge of your trading. You alone are responsible for your success or failure as a

trader.

Not the market... not the trading system... not the government or the Federal Reserve.

Day Traders Lesson 5. What The Mind Can Conceive...

Is it possible you secretly want to lose?

Self-destructive behavior can easily manifest itself in the markets, particularly among day traders.
When the price is dancing around in front of your eyes, it can take a grip of you. You can start to feel

Day Traders Lesson 4. Don't Think Money - Think Points

Following on from minimizing your exposure, we come to your relationship with money.

Whether we like it or not, money is highly prized in our society. It's important.

Day Traders (3) If You Don't Spend Much, You Can't Lose Much

One of the biggest mistakes you can make as a trader is have too much money riding on a trade.

The more money you use, the more emotional fuel you are pouring onto the fire. Eventually, you are

Day Traders (2) Plan Your Trades, Then Trade Your Plan

Your job as a trader is to follow a trading plan.

And who's going to write this trading plan? You are.

Day Traders 1) Understanding The Truth

Trading is a game of probabilities.

Imagine we're flipping a coin. Heads I win one dollar - tails you win one dollar.

Day Traders Introduction

Take two traders.

  

Give them the same starting capital, the same trading platform, the same market, and the same trading

system with precise rules for entry and exit.

Come back a month later and what will you find?

One trader will be up 20%. The other will be down 40%.

It's fascinating, isn't it, how two people can have the same opportunities in life, and yet get very

different results.

We at Day-Trading-Mind.com firmly believe that the answer to success lies within each of us; and that

we are each completely responsible for our own results in the market.

The following top 10 list was compiled from the many discussions that take place at our regular

monthly “trader's conferences” (i.e. a local bar). ;-))

Some of it you'll already know... some of it will be new.

Hopefully you'll find it useful.

Interview with Jason K. Product Manager of new Forex Platform cTrader

Today, I am very pleased to bring you a new forex interview with Jason K, the product manager from cTrader Ltd. The cTrader is
a relatively new forex trading platform that is visually stunning, state of the art and looks to have a very bright future in the forex industry.

Interview with Stocks, Commodities & ETF Trader Chris Vermeulen from TheGoldandOilGuy.com

Today, I am very pleased to bring you a new trader interview with Chris Vermeulen, the founder of the popular newsletter and trading website at TheGoldandOilGuy.com. Chris is an experienced trader in stocks, commodities, currencies, futures and ETFs. At the TheGoldandOilGuy.com, Chris provides clients and traders with an ETF and Stock Trading Alert Service complete with daily pre-market videos, intraday chart analysis & updates and ETF trade signals.
If you enjoy the interview, we have secured free access for CountingPips readers into Chris’s site to check out his trading style, analysis and signals (see end of interview).

Q: How did you become involved in the financial trading world?
When I was 16 years of age my dad received a marketing booklet in the mail from Larry Williams about trading commodities showing how much money could be made trading futures. I bet I read that book 20 times… Of course back then futures trading and the internet were completely different from what they are today, as there was no way that I could trade futures at a young age nor could I do it online…
It was that marketing booklet which got me turned on to trading at a young age.
A couple years later during college I became hooked on watching CNBC and eventually opened up a trading account buying up tech stocks and did very well at it. Luckily I took all my profits and bought trading books, courses and attended trading seminars with all the profits I generated. A couple years later, the tech bubble collapsed teaching me that I didn’t know how to make money in a bear market, but again I was lucky because I had spent almost all my money on trading education which provided me with the tools to learn to make money in a falling market environment.
Over the years I have jumped around trying all the different types of trading opportunities, from stocks, options, etfs, currencies, and futures. After trading the different types of investments I was able to select which fit my personality and time frames the best. I now focus on a mix swing trading stocks and ETFS and day trading SP500 futures.

Q: What markets do you mostly trade and was there something particularly attractive to you about these markets?
My main focus is on the SP500 (broad market) along with gold and silver.
The SP500 is great because you can trade Futures, ETFS or high beta stocks using my trading signals. Depending on the setup and time frame which the setup occurs I will choose which way to trade that particular opportunity. Also the volume on these instruments make it easy to enter and exit positions which is also very important.
As for gold and silver, they move much differently and I found my edge to trade them several years ago using a mix COT data, momentum, volume, ratios and price patterns.
Q: How did you get your trading education? Did you learn by demo trading, did you have a mentor?
Paper trading was something I did for a couple years before I did any real trading, simply because of my age and the lack of money. I think paper trading played a huge roll in my success because I was able to trade without any emotions for 2 years. I followed in John Murphy’s footsteps of technical analysis. I learned most technical analysis from his book “Technical Analysis of the Financial Markets” and the balance was a mix of learning a small gold nugget from each book or seminar I took along from analyzing the market over time building real life experiences of how to manage winning and losing trades.

Q: How often do you trade, are you a full-time trader? Do you trade longer or shorter times?
I am a full time trader with my main focus on swing trades lasting 5-90 days in length. That being said I always manage to get a few day trades in when an opportunity pops up on the intraday charts. The time frames I trade are the 1,10, 60 minute charts, along with the daily and weekly.

Q: Do you use more technical analysis or fundamental analysis, both? Do you take sentiment analysis into your decision making?
I think technical analysis is the most crucial part of trading simply because you can only make money when the price moves in your favor. That being said if you have a company with great fundamentals along with great looking technical’s, you stand a better chance of winning/making more money.
Sentiment is a very big part of my trading as I follow it each and every minute in real time. I have some custom indicators I created which allow me to spot short term extreme sentiment levels for both swing trading and day trading.

Q: Do you have any favorite economic indicators or favorite technical indicators that you feel are most reliable?
Yes, I like some indicators very much and when used together they provide excellent low risk trading opportunities. These indicators may seem basic, I find that I read and use them in a different way than the general public which gives me an edge.
Price charts
Volume analysis
Understanding Chart Patterns
Total Put/Call Ratio
NYSE Advance/Decline Line
US Dollar Index
Custom Sentiment Indicator

Q: What market(s) do you generally keep an eye on, maybe that are outside of the ones that you trade?
While I keep a close eye on the bond market, only recently have I started to trade them using the bull and bear ETFs for them. I also like some of the food commodity ETFs for trading things like sugar and livestock to name a couple. I also cannot leave out currency ETFs. Currencies are now very speculative and move like stocks so these are also becoming a larger portion of my trading activity.

Q: In conclusion, do you have any advice to anyone that may be just starting out in trading? Is there anything in particular that you wish you had learned when you started out?
Sure there is…
You must have multiple trading strategies if you want to pull money consistently from the market. The market goes through phases of trending and non-trending, each market condition requires a different trading strategy in order to take advantage of it. I use two strategies one which is for trending markets and another strategy when prices trade sideways or become choppy.
You must have clear trading rules and be disciplined enough to follow them (proper risk/reward ratios, stops, position size, trade the setups, money management). This is actually the hardest part of trading.
And, always stay positive! If you follow your rules and you have a losing trade, it simply means you are avoiding potentially larger losses and managing your position which is a must in this business. Remember there will always be another trade just around the corner and will be times when you lose a bunch of trades in the row, streaks where everything you touch makes you money. During losing streaks simple trim your position size until your strategies are in sync with the market again.

Thank you Chris for taking the time to answer my questions!
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