I’ve been thinking about the structural changes in the financial industry. I really think the markets have had a huge shift in the past 5-6 years just like there was a shift from trading floors to electronic trading in the late ’90s – early 2000s, which changed the way people participated in the markets. It […]
Tag: edge
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Good performance comes from not knowing
I’ve put some thought into this lately. Let’s be honest, nobody knows what the stock market will do next. If you’re still thinking otherwise and trying to predict the future, then I can just say that it’ll take some more time for you to understand. Everybody is guessing something and someone has to be right […]
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Life is poker, not chess
Wise words by Annie Duke, whose book “Thinking in Bets” I read and reviewed in the blog several years ago. What she means with this quote is that in poker we need to deal with lots of unknowns like cards we can’t see and players bluffing, but in chess all the information is available on […]
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The house edge
In a casino you want to be the house not the gambler. Think of the house edge. The more people come to play, the more a casino can take advantage of its statistical positive expectancy. I hadn’t put much thought to it until couple of years ago a backtest clicked to me. A smaller edge […]
The Market Wizards series from Jack D. Schwager is classics. Out of 100 episodes of trading podcasts I’ve listened to, in half of them these books have been mentioned. Just because of its popularity I guess you need to read them if you want to be serious about trading. His first book was released in […]