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Kill Your Darlings

www.thelundloop.com

Kill Your Darlings

Nov 27, 2021
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Kill Your Darlings

www.thelundloop.com

In case you missed it, check out “Thanksgiving: The Long and Short of It” in The Anecdote.


“Kill your darlings, kill your darlings, even when it breaks your egocentric little heart, kill your darlings.”

That’s the advice Stephen King gives to aspiring writers in his seminal book On Writing: A Memoir of the Craft.

It’s a riff – and surprisingly tamer given King’s horror pedigreed - on the original advice given by Arthur Quiller-Couch in his 1916 book On the Art of Writing in which he wrote that you should “murder your darlings.”

In writing this means getting rid of unnecessary storylines, characters, or sentences - elements you’re invested in, but that must be removed for the success of the overall story going forward- because they no longer work.

Stock picking, like writing, is a reductive process.

You start with a lot of ideas, ruthlessly pare them down until you find one that works, and ride it to its conclusion.

Then you move on to the next one. At least that’s what we’re supposed to do.

Too often we fall in love with a stock when it treats us well, then stick with it long after the good times are gone.

I was recently reminded of this by a great post from Charlie Bilello, which included the following list.



All these stocks were former winners, and somebody’s darlings.

It can be an intoxicating ride up the left-hand side of a chart, and a long painful hangover down the right.

That’s when the winner becomes the loser.

The trade becomes the investment.

And sometimes, the investment becomes the write-off.

So when the time comes, remember to kill your darlings.

Kill them all.

Or they may kill you.


Become a paid subscriber to the Lund Loop and get content like this every Saturday, plus daily chart updates Monday through Thursday, and access to our members-only Discord.

Best of all, it’s only $10/month or $100 for an annual subscription.


Weekend Strategy Video: 11-27-2021


After clicking the video below, make sure to maximize it and change the definition to 1080HD.


This week’s trading links:

  • Taking An Oversold Reversal Trade (video)

  • Trading Lessons Library

  • Potential Setups (close to triggering)

  • Keep An Eye On These (need to set up)

  • Full Watchlist


Market & Finance Links*


*Some tips for getting around paywalls.

Note: Market links are light today due to the short week.

A little more color around Friday’s stock market implosion. The Wall Street Journal


  • Remember bonds? A lot of people remembered what they’re for this week. The Reformed Broker

  • In the market, two contradictory things can be true at the same time. A Wealth of Common Sense

  • The most important thing about an investment strategy is having one. Investment Talk

  • A couple of articles that highlight some security issues around trading crypto. Morningstar and The Wall Street Journal

  • What will this era of the stock market look like in hindsight? The Reformed Broker

  • Why home prices are set to decelerate. Calculated Risk Blog

  • Your best investment is in your health. A Teachable Moment

  • What if Bitcoin really does replace gold as a store of value? Institutional Investor

  • The best stocks of 2020 are the worst stocks of 2021. The Irrelevant Investor

  • Should we really stock freaking out about inflation? Time


It’s Good, It’s Good*


*Some tips for getting around paywalls.

Money was literally free for the taking in San Diego this week. Twitter

But, maybe not. Fox40


  • NASA is about to crash a rocket into an asteroid. How cool is that? The New York Times

  • A fantastic piece on preparing yourself for change, by my buddy Phil Pearlman. Prime Cuts

  • “Everybody is entitled to their feelings about things, but expertise is earned.” Seth’s Blog

  • This is probably no surprise, but Keanu Reeves is cooler than you. Esquire

  • God, I love this. In praise of the public library. Collaborative Fund

  • Two friends set out to hike three of America’s longest trails in less than a year. Here’s their story. Los Angeles Times

  • It’s one of the most controversial subjects of our time. Milk. GQ

  • Should you change your passwords every 30 days? Debunking some popular security myths. Ars Technica

  • If you feel like you’re getting more phone notifications lately, you’re not imagining things. The Wall Street Journal

  • How did the body of a woolly mammoth that died 100,000 years ago end up 150 miles out into the Pacific Ocean, 10,000 feet deep? The New York Times

  • Yes, we do have fall in California. Here’s photographic proof, taken where you’ll find me almost every Saturday morning. California Fall Color

  • A profile of Tommy Caldwell, the man who climbs the most dangerous cliffs in the world. The New Yorker

  • An ode to barbecue potato chips. The Atlantic


Become a paid subscriber to the Lund Loop and get content like this every Saturday, plus daily chart updates Monday through Thursday, and access to our members-only Discord.

Best of all, it’s only $10/month or $100 for an annual subscription.


The Week in Tweets


Twitter avatar for @bclund
Brian Lund @bclund
Feeling disconnected from the world and people? Here's a great remedy. Get out into the world and interact with people.
4:17 PM ∙ Nov 21, 2021
25Likes2Retweets

Twitter avatar for @bclund
Brian Lund @bclund
First phase has been up since November 1st. But now it’s about to get serious. 🎄 x 💯
Image
Image
7:25 PM ∙ Nov 21, 2021
12Likes2Retweets

Twitter avatar for @bclund
Brian Lund @bclund
Everybody knows everything. Nobody knows nothing.
3:18 AM ∙ Nov 22, 2021
19Likes1Retweet

Twitter avatar for @bclund
Brian Lund @bclund
Today's market action in GIF form.
Image
9:33 PM ∙ Nov 22, 2021
28Likes3Retweets

Twitter avatar for @bclund
Brian Lund @bclund
A lot of ugly charts out there. Time to be strategic, or, maybe start the Thanksgiving holiday early. Don't let a bounce sucker your in to trading size. Manage risk aggressively.
12:06 AM ∙ Nov 23, 2021
32Likes5Retweets

Twitter avatar for @bclund
Brian Lund @bclund
There’s a whole generation out there who has learned the buzz words of trading. Not how to trade, just the buzz words. They are way past their 15 minutes.
2:08 AM ∙ Nov 23, 2021
47Likes3Retweets

Twitter avatar for @bclund
Brian Lund @bclund
Good morning!
1:07 PM ∙ Nov 23, 2021
15Likes1Retweet

Twitter avatar for @bclund
Brian Lund @bclund
One of the most important traits to have to become a successful trader is patience.
3:39 PM ∙ Nov 23, 2021
28Likes2Retweets

Twitter avatar for @bclund
Brian Lund @bclund
Remember SPACs? Those were cool.
Image
5:42 PM ∙ Nov 23, 2021
29Likes2Retweets

Twitter avatar for @bclund
Brian Lund @bclund
My two all-time favorite Christmas albums. Though released in 1961 and 1964, Ramsey Lewis is still going strong today at age 86. Get on these, you won’t be sorry. 🎄
Image
Image
12:01 AM ∙ Nov 24, 2021
13Likes1Retweet

Twitter avatar for @bclund
Brian Lund @bclund
Sticks and stones will break your bones, but words will never hurt. However, being in the wrong stock can really f**k you up.
7:23 PM ∙ Nov 24, 2021
28Likes3Retweets

Twitter avatar for @bclund
Brian Lund @bclund
Is anybody experiencing supply chain issues? I’m out and about and there seems to be just as much crap available to buy as in any other year.
12:00 AM ∙ Nov 25, 2021
61Likes1Retweet

Twitter avatar for @bclund
Brian Lund @bclund
Nobody cooks the night before Turkey Day!
Image
1:55 AM ∙ Nov 25, 2021

———————————

Thanks for reading this week’s edition of The Lund Loop.

I want to hear your opinion on these or any other topics you see fit to pontificate on.

So drop me a line.

And if you really like The Lund Loop, why not purchase a subscription for a friend, loved one, or division of co-workers?

Give a gift subscription

Talk to you soon,

-B

P.S. It should go without saying - but I’ll say it anyway - all opinions expressed in The Lund Loop are my own personal opinions and don’t reflect the views of my employer, any associated entities, or other organizations I’m associated with.

Nothing written, expressed, or implied here should be looked at as investment advice or an admonition to buy, sell, or trade any security or financial instrument. As always, do your own diligence.

Click here to read the full disclosure.

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Kill Your Darlings

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