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It’s integral to have investing rules or a belief system in place. In this podcast Tom and Brendan share the investing rules of Mullooly Asset Management. These are the principles and beliefs that provide a basis for how we manage money here at Mullooly Asset.
Point and figure technical analysis is our biggest tool when managing money. One thing that needs to be understood is that point and figure measures supply and demand. If you haven’t read or heard us speak about point and figure charting before you can check out some of our older posts in the point and figure section. People think that supply and demand doesn’t work on Wall Street, but it really does. Supply and demand drives the prices of stocks, and prices are all that matter! When something is in demand its price is going to rise, whether it’s a stock or a slice of pizza from the restaurant down the street.
In order to understand the investing rules of Mullooly Asset Management, it will help if you think of Wall Street like a voting machine. Investors set the market price by voting what they believe a stock is worth. In this example voting means buying or selling a stock. Eventually a stock’s true value will be reflected in its price. This voting machine example works whether you focus on fundamental analysis, technical analysis, or both. Investors either find a stock undervalued or overvalued based on how they choose to assess it.
Tom and Brendan discuss the investing rules of Mullooly Asset Management in more detail during the podcast. We highly recommend listening to hear further explanations of these points.
Investing Rules of Mullooly Asset Management
- We will take profits for our clients if the time is right.
- If an investment doesn’t work out how we anticipated, we will get out.
- We don’t fall in love with stocks or positions.
- We’re religious about knowing what to do when things go wrong.
- We don’t anticipate our indicators. We wait for them to occur and react accordingly.
- The key to success is cutting losses short.
- Investing is a game of probabilities, nothing more. We try to stack the odds in our clients’ favor as much as we can.