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 […]
Categories
Tune out the noise
I went through a meditation course and took notes of my progress for several weeks in 2019, which taught me to look at myself, my actions and feelings from aside as a separate person. It made me aware of so many emotional states I was experiencing while making trading decisions or placing orders. When I […]
Categories
An investment is a speculation gone right
“Speculation is the name given to a failed investment and investment is the name given to a successful speculation.” Edward Chancellor A good quote expressing the semantics of different terms used by market participants. It doesn’t matter how you call it, we all make a guess about the unknown future when we buy a stock […]
The past is not a good guide to make predictions about the future because the future will be different. One should take as little as possible but as much as necessary from a backtest. A backtest shows how an idea would have worked out in the past if one followed a specific set of rules. […]