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News and Blog

  • BREXIT – Hard Exit

    Apparently this is what a hard exit looks like. For the FTSE it seems to be a case of coming home and finding all your stuff on the front lawn….

    BREXIT – Hard Exit
  • The Men Who Started a Thinking Revolution
  • The Myth and Magic of Deliberate Practice

    Joe DiMaggio was one of the greatest hitters in baseball history. A three-time winner of the Most Valuable Player award, DiMaggio was selected to the Major League All-Star team in each of his thirteen seasons. He is best known for his remarkable hitting streak during the 1941 season when he recorded a hit in fifty-six… Read more…

    The Myth and Magic of Deliberate Practice
  • What Can Be Measured Can Be Managed

    I was having a catch up with my good mate and uber cool pad holder Jarrod yesterday – we both share a fascination with human performance. We are both interested in what we can get out of the machine we wander around in all day. As part of this quest he had recently been to see… Read more…

    What Can Be Measured Can Be Managed

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Recent Articles

BREXIT – Hard Exit

Apparently this is what a hard exit looks like.

gbp_eur gbp_usd gbp_aud 100

For the FTSE it seems to be a case of coming home and finding all your stuff on the front lawn….

The Men Who Started a Thinking Revolution

Click image for episode.

Freak

The Myth and Magic of Deliberate Practice

Joe DiMaggio was one of the greatest hitters in baseball history. A three-time winner of the Most Valuable Player award, DiMaggio was selected to the Major League All-Star team in each of his thirteen seasons. He is best known for his remarkable hitting streak during the 1941 season when he recorded a hit in fifty-six consecutive games—a record that still stands more than seventy-five years later.

I recently heard a little-known story about how DiMaggio acquired his exceptional ability.

As the story goes, a journalist was interviewing DiMaggio at his home and asked him what it felt like to be such a “natural hitter.” Without saying a word, he dragged the reporter downstairs. In the shadows of the basement, DiMaggio picked up a bat and began to repeat a series of practice swings. Before each swing, he would call out a particular pitch such as “fastball, low and away” or “slider, inside” and adjust his approach accordingly.

Once he finished the routine, DiMaggio set the bat down, picked up a piece of chalk, and scratched a tally mark on the wall. Then he flicked on the lights to reveal thousands of tally marks covering the basement walls. Supposedly, DiMaggio then looked at the journalist and said, “Don’t you ever tell me that I’m a natural hitter again.

More here – James Clear

What Can Be Measured Can Be Managed

I was having a catch up with my good mate and uber cool pad holder Jarrod yesterday – we both share a fascination with human performance. We are both interested in what we can get out of the machine we wander around in all day. As part of this quest he had recently been to see a dietitian who works with several AFL clubs and during the conversation they mentioned that as part of their regime they didn’t count calories. We both thought this was odd for the simple reason that without data you are operating in a vacuum, without knowledge about your calorie intake and in particular your intake of various macro nutrients you are simply guessing. And guessing simply doesn’t count when it come to assessing change.

The point here is obvious, if you are not in some way tracking the performance of your trading then you have no means by which to judge your performance. Without having a series of metrics that tell you how you are doing  then you are also operating in a state of ignorance and in many cases delusion. I understand that some people dont want to track their system since this would defeat the entertainment component of trading. Knowing how badly you are doing would take the fun out of it. The same is true for people who struggle with their weight – they dont want to know how badly they are doing. Ignorance is bliss.

Performance tracking does not have to be complex – it only needs to tell you a simple story, how many trades did you get wrong, how many did you get right, what is your average profit/loss per trade and do you have more money at the end of the year than at the beginning. All this can be achieved in a spreadsheet with a little bit of playing around.

Information Overload


 

LAMBORGHINI WINTER ACCADEMIA

From the good Dr Joe
 


 
And if you need further convincing
 

 

No Man Is An Island

So said John Donne and the same is true of markets. One of the most fascinating features of trading is that markets at times they display interesting interrelationships and that these relationships tell you something about the underlying emotional state of the market. Below are three markets I am currently involved in and all seem at this point in time to be telling a story about how the market is currently coping with a President – Elect who seems to have the IQ of a trout and the stability of a slinky falling down Mt Everest.

Markets

As  personal disclaimer I am currently long gold, short the USD in various iterations and my short term Dow system just threw me out from my last long position. So this is my story so it reflects my internal bias. What is interesting is that the Dow didn’t power through 20,000. I remember when it hit other “significant” numbers and it just burst straight through – there was no prevarication or hesitation. Yet at the same time the Dow paused gold began to move up and the USD Index began to move down. Whilst is is interesting to try an assemble a narrative from this – it is easier to simply trade the charts and let others build a narrative as to what they mean.

As a final point it is worth looking at how a few major markets have performed YTD – as you can see precious metals seem to be doing a fair bit of heavy lifting.

YTD

 

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The Trading Game Pty Ltd (ACN: 099 576 253) is an AFSL holder (Licence no: 468163). This information is correct at the time of publishing and may not be reproduced without formal permission. It is of a general nature and does not take into account your objectives, financial situation or needs. Before acting on any of the information you should consider its appropriateness, having regard to your own objectives, financial situation and needs.