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, […]
Tag: risk management
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 […]
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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 […]
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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 […]