Outliers, Timing And The Illusion Of Returns (part 2)
Tuesday, June 1st, 2010Outliers, Timing, And The Illusion Of Returns
Thursday, May 27th, 2010A 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 [...]
The Devil Is In The Details: An Important Limitation In Back Testing
Wednesday, April 14th, 2010It 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 [...]
INSIGHTS: Expect The Unexpected
Tuesday, February 23rd, 2010I 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 [...]
Bumbling Ben Bernanke
Friday, February 12th, 2010This 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 [...]
The Last Man Standing – Survivor Or Skill
Wednesday, February 10th, 2010Those 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 [...]
One Must Maintain A Sense Of Humor To Be In This Business
Tuesday, January 26th, 2010THE 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 [...]
A Few Hands Make The Big Money
Thursday, January 21st, 2010Here 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, [...]
Why The Small System Trader Fails
Friday, January 8th, 2010Wisdom 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 [...]


