Category: Independent Thinking
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Counting down to the New Year
Doesn’t it seem the years are flying by? It’s partially just math. It’s asymmetric! We perceive that time seems to pass faster as we age because, at four years old, a year was 25% of… Read More
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What do wealthy people do differently?
This morning a financial planner who knows we are the investment manager to wealthy families asked me a great question: “What do wealthy people do differently?” I thought I would just sit here and write… Read More
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Resolving Conflicts with Relative Strength
In “Relative Strength can be a source of conflict for Tactical Traders” I explained how two different momentum indicators are in conflict with each other and can lead to conflict in tactical trading decisions. Tactical traders… Read More
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Relative Strength can be a source of conflict for Tactical Traders
Relative Strength can be a source of conflict for Tactical Traders. I was talking to another tactical trader who manages a hedge fund. He said: “Industrials are a leading sector, but it’s overbought”. Relative Strength is… Read More
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Name ONE thing money can’t buy?
Name ONE thing money can’t buy? asked a friend on Facebook that got responses like happiness, respect, health, love, freedom, and class. My answer: Anything. Money itself can’t buy anything. Money is a medium of… Read More
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On Sheep, Wolves and Sheepdogs
I consider On Sheep, Wolves and Sheepdogs from the book, On Combat, by Lt. Col. Dave Grossman, to be essential. It is absolutely necessary to understand the concepts so that we know who we are, where… Read More
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Asymmetric Volatility
Volatility is how quickly and how far data points spread out. Asymmetric is not identical on both sides, imbalanced, unequal, lacking symmetry. This time of year we are reminded of asymmetric volatility in the weather.… Read More
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Investors feel and do the wrong thing at the wrong time…
Many studies show that investors have poor results over the long haul including both bull and bear markets. For example, DALBAR has been conducting their annual Quantitative Analysis Of Investor Behavior study for 22 years now. DALBAR’s Quantitative… Read More
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A new scientific truth does not triumph by convincing its opponents and making them see the light, but rather because its opponents eventually die, and a new generation grows up that is familiar with it.”
–Max Planck, Nobel Prize-winning physicist Source: https://en.wikiquote.org/wiki/Max_Planck Read More
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Systems trading is ultimately discretionary. The manager still has to decide how much risk to accept, which markets to play, and how aggressively to increase and decrease the trading base as a function of equity change. These decisions are quite important – often more important than trade timing.”
–Ed Seykota in Market Wizards: Interviews with Top Traders By Jack D. Schwager Read More