Category: Theory And Training
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The Evolution of Political Regimes
Plato, using Socrates as his mouthpiece, wrote the following condemnation of Athenian democracy in his Republic: [The citizens] contemptuously rejected temperance as unmanliness… Insolence they term breeding, and anarchy liberty, and waste magnificence, and impudence courage… The father gets accustomed to descend to the level of his sons and to fear them, and the son…
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Adaptability Versus Optimization: The Cockroach Approach
As we trudge onward in the longest bull market in US history, I thought it wise to share with you a section from an old article written by Richard Bookstaber, titled “Risk Management in Complex Organizations”.The article talks about risk. Particularly, that most pernicious kind of risk… The kind we can’t foresee.Volatility selling, FAANG hodling,…
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How to Identify the Consensus
Here’s John Percival, writing in his book The Way of the Dollar, describing how to identify the Consensus and act as a Contrarian. “Remember the last time you sold a currency at what proved to be the bottom, or bought at the exact top? That wasn’t just bad luck — nor even just foolishness. You…
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There Are No Limits
“Bruce [Lee] had me up to three miles a day, really at a good pace. We’d run the three miles in twenty-one or twenty-two minutes. Just under eight minutes a mile [Note: when running on his own in 1968, Lee would get his time down to six-and-a-half minutes per mile]. So this morning he said…
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Trader Vic’s Market Methods
I first came across Trader Vic over a decade ago while meandering through an old book store. My dog-eared and excessively highlighted copy still sits on the bookshelf next to my desk. It’s one of the few trading books I regularly turn to for a reread. The book covers everything from trade management to market…
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The Return of Vol Trader Darrin Johnson
Back by popular demand Chris welcomes back volatility specialist @darjohn25 Darrin Johnson on the pod! This is a very intricate, detailed and thorough discussion about trading for a living by two traders who’ve been in the trading game for a long time. The two talk about why most traders fail, what’s wrong with trying to…
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Allan Mecham and Arlington Value: Invaluable Lessons on Value Investing
There aren’t many investors compounding capital at double digits over the course of decades and those that do are already well known (i.e., that guy from Omaha). However, in a small office above a taco shop, there’s a man running a hedge fund called Arlington Value who has demonstrated the advantage in simplicity, long-term thinking,…
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Why The 90% Trader Failure Rate Is Good News
Tyler here. It seems intimidating to tackle an endeavor where 90% of participants fail. The little voice whispers: Wow, nine out of ten people fail at this? What makes me so special then? And yet, consider: Nine out of ten small businesses fail. Nine out of ten Americans can’t stay on a diet. Nine out…
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Breaking Down A Market Edge
To be an active investor, you must believe in inefficiency and efficiency. You need inefficiency to get opportunities and efficiency for those opportunities to turn into returns. ~ Michael Mauboussin A limited amount of alpha exists out there in the trading universe. And these excess returns come from errors, missteps, and knee-jerk reactions from the…
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Linda Bradford Raschke’s Trading Strategy Explained
In the following piece we’ll break down Linda Bradford Raschke’s trading strategy along with the tools she uses to consistently beat the stock market year after year. I realize that I’m only human, and that I’ll always make mistakes. I just try to make them less frequently, recognize them faster, and correct them immediately! We…