Loading ...Who is Plunger ?
My name is Burt Coons.
My Pen name “Plunger” is a spoof based on a quote from P.J. O’Rourke, an American political satirist and journalist.
“Giving assets to a stock market plunger is like giving beer and car keys to teenage boys.”
A plunger is the polar opposite of a prudent investor. “Most prudent investors find that their permanent profits come from a diversified portfolio where they maintain a discipline of letting profits run and cutting losses quickly. A plunger, on the other hand, will make daring emotional speculations, risking a large percentage of capital on a single trade, having total unquestioned certainty on their “trade-of-the-month”. Seldom do they build into a position over time adding increasing purchases only after the market validates their market opinion. No, instead they plunge into the trade all at once.”
In my formal training I achieved a BS in Economics with a focus on econometrics and political economy. After earning my degree, my academic journey revealed to me that conventional Keynesian theory was wholly insufficient in explaining the financial world we live in. This led me to the Austrian school of economics as founded by Ludwick Von Mises. I was mentored by Harry Browne and have studied the entire works of Mises and Murray Rothbard.
As an investor and trader I have been principally influenced by Dow Theory and the great analysts who developed and evolved it to what it is today. Modern portfolio management falls far short of what the great stock market theorists of the 20th century had to offer. What has been lost is the skill of interpreting the averages through reading the language of the market.
My role as a market historian has evolved from reading the greats on market history. I have observed the great Wall Street analysts of old were far superior to anyone providing analysis today. So we use the method of these analysts, Charles Dow, William P. Hamilton, Robert Rhea and Richard Russell to guide us. I am also a student of the technical analysis discipline know as Chartology ( a modern adaptation , by TA analyst Rambus, of the classical work authored in the 1950s by Edwards and Magee)
To be successful as an investor one must not follow Wall Streets recommendations, but instead develop the skills to independently interpret the market.
I have been fortunate the past 30 years observing, up close, the economies and cultures of the world in the role of being a Captain for a major International airline.”
Favorite topics:
The great 1920’s bull market and the ensuing depression
The colorful market operators of old, Livermore, Jay Gould, Daniel Drew.
Bear Markets
Books:
Panic Profits-Brown
101 years on Wall Street- Brown
Anatomy of the Bear- Napier
Devil take the hindmost-Chancellor
Rainbow’s End- Klein
All books by Charles Kindleberger
Editor’s Note:
Plunger is resident Market Historian and posts Exclusively at Rambus Chartology as a associate writer
For More ..Join Rambus and Plunger here
“After earning my degree, my academic journey …. ”
That’s the part I don’t get. Most people don’t take academic journeys after leaving school. LOL.
(And most don’t get into econometrics until grad school … maybe these days they do with PCs etc. We only had a mainframe in late 70s, early 80s to toy with. Once I got into economic consulting, I learned GIGO .. garbage in and garbage out and that result were often EXTREMELY sensitive to mistaken or manipulated data. I completely abandoned econometrics at that point.)
But yes, the key was to ditch Keynesian theory. But how did YOU even find the Austrian school? I had ONE office mate (Greg C.) who was familiar with them, that I knew of. And another (Dave Weidemer) whose dad may have, as he and his dad later wrote one of those Crash books ten years ago. Don’t recall if it had a theory premise behind it. But the Austrians had the model. I didn’t “get there” until Shilling’s Deflation book came out, followed by Ron Paul’s commentaries during the tech bust, as to WHY? and who would put it together.
Never ever contemplated being a pilot, although I loved to travel AND STAY for lengths of time in foreign places. And eat better food than airport fare. You managed it though, so kudos. The history part is key. Patterns repeat. Armstrong takes that to heart too.
” But how did YOU even find the Austrian school?”
LOL pedro….that’s a good question ? maybe its in Austria ?
🙂
Very good information! I was afraid your name was based on a certain salle de bain appliance but am truly relieved it was not. :0 0)