The Psychology Of Risk
Source – HANDBOOK OF FINANCE: VOLUME 2: INVESTMENT MANAGEMENT AND FINANCIAL MANAGEMENT, Frank J. Fabozzi, ed., John Wiley & Sons, pp. 85-111, 2008
A Few Random Thoughts
These are some random thoughts I have been putting together following the events of last week. 1. Markets move from manic to panic within a few sessions. Those who still cling to the outdated notion that humans are rational assume that when markets transition they do so in an orderly fashion. The thinking is that…
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Traders’ Hormones’ May Destabilize Financial Markets
You could probably call this the here hold my beer and watch this hypothesis.. Researchers simulated the trading floor in the lab by having volunteers buy and sell assets among themselves. They measured the volunteers’ natural hormone levels in one experiment and artificially raised them in another. When given doses of either hormone, the volunteers…
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Well……This Seems Familar
As I watch my position in lean hogs gyrate in the wind I was reminded of these episode of the King of Queens. If you are not having a long breakfast skip to 15:20 for the most relevant piece and avoid the last few minutes since it is the usual childish American ending.
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Is This A Sign?
….for my short position in lean hogs
A Bit Of A Worry But Not Surprising
A recent survey has found many Australians have low financial literacy; don’t understand how mortgages work or how the RBA cash rate affects them. The survey conducted by super fund-owned bank ME of 1000 people found that almost half of Australians admit to being uninformed about the mortgage market. Furthermore, 40 per cent of survey respondents did not…
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Trading System Design
In the Mentor Program we have been in the process of building and refining a trading system. The question was posed as to what I thought the greatest impediment is to generating such systems and by extension what is the greatest drawback that individual traders face. As always the greatest source of difficulty that traders…
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How The Marines Shaped Our Investment Philosophy
Serving in the Marine Corps was an unforgettable experience. Civilians often tell us “thank you for your service”; however, the real “thanks” is due to the Corps for giving us valuable life lessons. The not-so subtle teachings bestowed upon us by heavily muscled, insanely aggressive Marine Corps Drill Sergeants are still, literally, ringing in our…
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