There has been much tragedy in my life; where at least half of it actually happened – MARK TWAIN Why do we always feel so bad when we are in a trading slump, or in a draw down if we are trading a system? Do we not realize that this is part of the [...]
Perhaps it is better to be irresponsible and right, than to be responsible and wrong – WINSTON CHURCHILL I don’t know about you but I think it’s pretty confusing out there right now. How are the government interventions to the financial crisis going to play out? Is the result going to be rampant inflation? Are [...]
Well, you’re on your own, you always were, In a land of wolves and thieves, Don’t put your hope in ungodly man, Or be a slave to what somebody else believes – BOB DYLAN Most traders and investors that I know are quicker to accept data processed from a computer than they are their own [...]
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 [...]
The assumption that seeing is believing makes us susceptible to visual deceptions – KATHLEEN HALL JAMIESON It is only human nature to make assumptions. In fact we don’t really give it much thought. We just assume our boss is impressed when we come in early or stay late. We assume our wife forgives [...]
Ask not that the journey be easy, ask instead that it be worth it – Author unknown I was having lunch with my partner and a client yesterday when the conversation turned to trading (imagine that), and in particular what keeps a trader from being consistently profitable. There are countless reasons why most [...]
John Von Neumann, a Hungarian physicist introduced the world to “Game Theory” through a 1926 paper which proved “the only rational way to win at a childhood game called match penny, was to try not to win. In match penny, two players turn up a coin at the same moment. If both coins are heads [...]
“Everyone has a plan ‘till you get punched in the mouth’” – Mike Tyson Mike Tyson knew how having your plan challenged can be rather upsetting, and could perhaps change your entire pre-conceived expectation. Surprises, whether expected or not, can drain the confidence right of out you, and cause you to make irrational decisions. Most [...]
