Here’s the thing. If you can’t spot the sucker in your first half hour at the table, then you’re the sucker – MATT DAMON from the movie Rounders I think most of us will agree in order to be successful trading we need some kind of an edge. A good friend or relative who [...]
A perfection of means, and confusion of aims, seems to be our main problem – ALBERT EINSTEIN In Part one we talked about how outlier events in the markets play such an important role in our final performance, yet how few are really aware of this fact. These events come out of nowhere, [...]
A perfection of means, and confusion of aims, seems to be our main problem – ALBERT EINSTEIN Malcolm Gladwell in his book Outliers says an “outlier is a scientific term to describe things or phenomena that lie outside the normal experience”. In Florida for example, you can expect most days during the summer [...]
It seems to me that back testing trading strategies before trading them is becoming increasingly more popular these days. The evolution of the “sophisticated” trading platform now offers investors access to “back testing strategies” as well as fast and cost effective execution. The “do-it-yourself” fad is on the rise, and who can cast blame when [...]
I think some traders and investors have a difficult time dealing with uncertainty because they basically think they are right, and are afraid of being wrong. After all, no one likes to be wrong about something they have researched out and committed to. The problem with this posture is that you are more reluctant to [...]
This is an interesting short video from YouTube which covers some of Ben Bernanke’s forecast from 2005-2007, just before the crisis took us hostage. Now, I would assume that Ben Bernanke has a research staff, and access to information, that would dwarf our capabilities, not to mention he can call anyone he wants on the [...]
Those that have knowledge don’t predict. Those that predict don’t have knowledge – LAO TZU What criteria did you use to choose your latest investment? A better question would be, are you sure that you even understand the criteria? For example, let’s say that you chose a mutual fund based on your advisors [...]
THE Lloyd’s Prayer Our Chairman, Who Art at Goldman, Blankfein Be Thy Name. The Rally’s come. God’s Work Be Done On Earth as there’s No Fear of Correction. Give Us This Day Our Daily Gains, And Bankrupt Our Competitors As You Taught Lehman and Bear Their Lessons. And Bring Us Not Under Indictment. For [...]
Here is an interesting video of Trader Salem Abraham and Howard Lederer, legendary poker player. They discuss the similarities in managing a good poker hand and a good trade, and how folding bad hands in both cases is the key to success. Howard Lederer is known as “the Poker Professor” because of his demeanor, [...]
Wisdom is meaningless until your own experience has given it meaning and there is wisdom in the selection of wisdom – BERGEN EVANS Author and Professor Those of you that follow this blog know that I am a big fan of a definitive trading plan. Having a plan however, does not equate to success, there [...]
