In 1928 in New York City, John D. Rockefeller was having his shoes shined. The shoe shine boy, presumably not knowing who Rockefeller was, started giving him stock tips and financial news of the day. Rockefeller took his shoe shine boy’s advice but not in the way you would expect. He decided that if a shoe shine boy was giving stock tips.. It was time to get out of the market. He did! And it’s the reason his family was able to stave off the Depression, and continued to be one of the richest in our history.
Honestly, I do not give a damn if the story is true or not. But this story really give us a piece of important lesson!
Who is your equivalent shoe shine boy? Is he the taxi driver? Is he your colleague who has shown sudden interest in stocks like never before? The first tip is about increasing your street smarts by surveying the sentiments of the people around you. When many people are optimistic about investing in stocks, it is probably time to get out.
"Honesty is a very expensive gift, don't expect it from cheap people"Stick to your trading plan, and be disciplined. Keep it simple.
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