First, let me say that all the content in this blog is written manually by myself without any use of the fancy AI tools. I’ve been tinkering around with ChatGPT Plus to keep myself up to date with the latest technology. AI tools are great for content, translation, marketing materials, online search, working with data, […]
The title comes from an American poet Christopher Morley, which I heard in Morgan Housel’s podcast episode “Do It Your Own Way” released on the 28th of September. It’s a short but thoughtful episode and I suggest everyone to listen to it. What if you didn’t even know about other people’s goals The ultimate goal […]
Claude Shannon was an American mathematician, cryptographer, engineer and computer scientist who lived in the 20th century and died in 2001 aged 84. Sometime in the 1960s at MIT he came to a theory of rebalancing that is now called Shannon’s Demon. I saw it randomly already a few years ago on the web and […]
Trading is hard. But it’s not something we think about much at first, because many books and videos leave the impression that it can be quite easy. Like how hard can it be to buy MACD crossing or RSI below 30?! After trading for a while, hurdles start to appear. Not many have analyzed that […]
Categories
Shorting stocks as part of risk management
The stock market has upside bias in long-term, but shorting can actually offset downside risk due to having negative correlation to long exposure. When one side is losing money, the other side often tends to make money at the same time. It doesn’t mean they only balance each other out and give a breakeven result […]