All Booms End
Be they single instruments or complete markets – lumber is the perfect reminder of this. But t is a lesson that traders always fail to learn.
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I Dont Think The Market Cares
I was having a flick through our corporate Twitter feed when I saw someone bemoaning the fact that INTU was trading at 50x earnings. I don’t think the market really cares. But it is an example of the disconnect between the belief structure that dictates that you think you know what something should be worth…
The Value of Intellectual Rigor
Sarah Tavel has spent the past four years as a general partner at venture capital firm Benchmark, after previously serving in the same role with Greylock Partners and as the first-ever product manager at Pinterest. In this episode Shane and Sarah how studying philosophy helped in her career as a venture capitalist, the value of…
You Can Teach Yourself to Suffer Better
Two weeks into his 38-day solo row across the North Atlantic, Bryce Carlson got a disturbing update from his weather team. Hurricane Chris’s 90-mile-per-hour winds were stirring up 45-foot waves, much more than his 20-foot rowboat could handle—and the storm was headed his way. He veered south to avoid its path, but that meant rowing directly…
What are the 10 Biggest Mistakes Made by Fund Investors?
Based on years of observation and bitter, painful experience; here are my thoughts on the ten most significant mistakes made by fund investors:….. More here – Behavioural Investment
No, You Can’t Recycle a Bowling Ball
Every day, collection trucks from Brooklyn and barges from Queens and the Bronx arrive at Sims Municipal Recycling in Sunset Park, loaded up with old phone books and plastic sporks, metal faucets and glass bottles. It’s the country’s largest recycling facility of its kind, sorting more than 1,000 tons of New York City’s metal, glass,…
So….How Have You Done?
Every now and again it is worth reviewing your performance against some form of benchmark. Managed/Superannuation funds measure themselves against an index such as the All Ords and fail repeatedly to even match it and traders do the same thing. However, this does raise the question as to whether measuring active performance against a passive…
The Simplicity of Trading Part Two
I have been beavering away at this presentation I am doing on The Simplicity of Trading and part of the presentation looks at why we try to make life hard for ourselves. And the most effective answer I can come up with is simply because we want to and there are a few facets to…
The Simplicity of Trading
I have been invited to attend a function where I am going to talk about the simplicity of trading and how the majority of traders needlessly complicate their trading activity. I was thinking of just playing this and going to get a cuppa. Note the following is a repost and is not for really sensitive…
Do Day Traders Rationally Learn about Their Ability
The quick answer is no….. Abstract We analyze the performance of and learning by individual investors who engage in day trading in Taiwan from 1992 to 2006 and test the proposition that individual investors rationally speculate as day traders in order to learn whether they possess the superior trading ability. Consistent with models of both…
Focusing On Focus: Why We Fail To Reach Our Potential
What we focus upon, we internalize. Focus is our cognitive magnifying glass: the more intense the focus, the deeper our experience. Most of the time, we do not focus. We move from thought to thought, activity to activity, and internalize very little. We can participate in conversations at a party and retain little of the…
What to Do When Your Mind (Always) Dwells on the Worst-Case Scenario
Not long ago, a medical student, let’s call him Paul, walked into my shift in the emergency room of a large university and told me that his life was ruined. I’m a clinical psychologist. And for the past 20 years, I have worked — in many capacities — with young adults. I’ve counseled them in…
