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RECOMMENDED.
Not for wimps, the lazy, or the faint-of-heart.
Perhaps the most widely quoted work by industry professionals.
Awesome in every sense of the word.
Archive for the ‘DEEP Investing’ Category
Trading Systems and Methods by Perry Kaufman
In BOOK Review, DEEP Investing on February 21, 2010 at 11:38 PMHigh Probability Trading by Marcel Link
In BOOK Review, DEEP Investing on February 21, 2010 at 11:29 PM
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RECOMMENDED
Interesting insights from a pre-high frequency prop trading perspective.
This is a totally different angle from your typical retail trading experience.
Mechanical Trading Systems by Richard Weissman
In BOOK Review, DEEP Investing on February 21, 2010 at 11:18 PM
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RECOMMENDED.
“The greatest benefit of mechanical trading systems is their ability to reprogram traders away from destructive types of behavior in favor of successful trading habits.”
–Richard Weissman
Perhaps W. Edwards Deming said it best: “If you can’t describe what you are doing as a process, you don’t know what you’re doing.”
I can count on one hand the number of traders I’ve met on the Philippine Stock Exchange trading floor who can describe every facet of their trading as a process. True, some veterans can kick butt trading ‘by their gut’ but they are few. I suspect the majority let their emotional state or whims of the moment play a inappropriately large role in putting on trades.
If you’re serious about your trading, you’ll systematize what you’re doing.
Enhancing Trader Performance by Brett Steenbarger
In BOOK Review, DEEP Investing on February 21, 2010 at 11:09 PM
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RECOMMENDED
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The renown author of The Psychology of Trading and student of peak performance training explores professional trading as a performance discipline.
“‘Can anyone become a successful trader?’
What most people want to hear when they ask this question is ‘Of course. With persistence and motivation, you can succeed.’
That, however, is nonsense.”
–Brett Steenbarger Read the rest of this entry »
Market Wizards by Jack D. Schwager
In BOOK Review, DEEP Investing on February 21, 2010 at 11:05 PM
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RECOMMENDED
If I was forced to jettison my entire trading library and keep ONE BOOK, this would be it.
Take On the Street: What Wall Street and Corporate America Don’t Want You to Know. By Arthur Levitt
In BOOK Review, DEEP Investing on February 21, 2010 at 11:02 PM
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RECOMMENDED.
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You’ll never look at fundamental analysis the same way again.
Passport to Profits: A Guide to Global Investing by Mark Mobius
In BOOK Review, DEEP Investing on February 21, 2010 at 10:56 PM
“Sir John Templeton was the first American investment manager to pursue investments in foreign markets. He chose Mobius as his general to lead the Templeton Emerging Markets Fund, which invested heavily in dozens of emerging and frontier markets years before most other funds got a clue.
My fave quote:
“All markets, being based more in mass psychology than objective reality, have a tendency to overshoot and undershoot economic growth rates. Judging the influence of irrational emotion is, by the way, the way we make most of our money.”
Mobius, by the way, was the keynote speaker for the Asia Pacific Investment Conference 2009 at the Renaissance Hotel in Makati City, Philippines.
Practical Speculation by Victor Niederhoffer
In BOOK Review, DEEP Investing on February 21, 2010 at 10:53 PM
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Recommended.
Renown mentor and trainer of numerous world class traders including Monroe Trout, Toby Crabel, Stu Rose, James Altucher, John Hummer, Jake Burton Carpenter and Roy Niederhoffer.
Intriguing read, despite Niederhoffer’s obvious issues with risk management.
This book came out midway between two extremely high profile Niederhoffer fund blow-ups: the first in 1997 when he was arguable the top fund manager on Earth; the second in the 2007 subprime meltdown, a year after his Matador Fund was awarded by MarHedge as one of the best in the world. Read the rest of this entry »
Cybernetic Trading Systems
In DEEP Investing, INTELLIGENT Investor on December 24, 2009 at 2:59 PM
“Cybernetics was defined by Wiener as ‘the science of control and communication, in the animal and the machine’—in a word, as the art of steermanship.”
–W. Ross Ashby
CYBERNETIC TRADE CONTROL SYSTEMS
Cybernetics embodies a multi-discipline theoretical framework which focuses on goal-directed systems. These systems use information, models, and control actions to steer towards and maintain a predefined objective while attempting to counteract anything which detracts from this objective.
Perhaps the most fundamental innovation of cybernetics is its explanation of purposiveness, or goal-directed behavior.
Cybernetics and Fund Management
“Goal-directed behavior” is particularly critical in the world of investment management. Read the rest of this entry »
Nassim Taleb attacks VaR in Congress
In DEEP Investing, INTELLIGENT Investor on December 24, 2009 at 6:38 AM
more about “Nassim Taleb attacks VaR in Congress“, posted with vodpod
Pseudo-Traders with No Face-to-Face with the Investing Public
In DEEP Investing, INTELLIGENT Investor on December 22, 2009 at 5:35 AM
Welcome to the arena.
There are several variations of pseudo-traders who have little to no face to face with the investing public. Two examples:
The Do-What-The-Boss-Tells-You-To-Do “Trader”: This is the institutional or mutual fund version of the cash-register-clerk “trader”. The only difference is the customers queuing up to buy or sell are institutional brokers. In this scenario, the folks barking orders on the other end of the phone aren’t interested in your advice. Read the rest of this entry »
Research and Development
In DEEP Investing on December 21, 2009 at 5:09 AM
- Nothing beats original investigation.
“Ninety-nine percent of the people in the business are followers. They’re not creative and they’re not willing to rely upon themselves to make decisions, so they rely upon other people.”
–Tom Demark
The Study
Covered approximately 6000 years of raw price data from the Philippine stock market
- 600 stock charts
- Approximately 240 listed companies
- 10 years of monthly price data
- 10 years of weekly price data
- 10 years of daily price data
The Primacy of Fixed Downside Risk
In DEEP Investing on December 14, 2009 at 1:50 PM
Defense Readiness meets Algorithmic Trading Systems
CONTINGENCY PLANS FOR CONTROLLING LOSS
The property of Fixed Downside Risk is one of the defining characteristics–if not the defining characteristic–of my investment methodology.
Furthermore, when it comes to Fixed Downside Risk, I’d go so far to say that 99% of all the retail stockbrokers I’ve met–in the Philippines and in the United States–received zero training in how to do this–nor indeed, even know what I’m talking about.
Don’t believe me? Ask them yourself.
“We focus on risk before we focus on return. The best investors do not target return. They focus first on risk.”
–Seth Klarman
On Modern Finance Theory: It Pays to Ignore Your Professors
In DEEP Investing on December 12, 2009 at 3:10 PM
"So, theoretically if I had any money, here's how I would invest it..."
When it comes to wading through the tsunami of academic contributions to Modern Finance (or the fund and banking destruction left in its wake) I cling tightly to the maxim be careful who you listen to.*
Mind you, there are a number of academics I greatly admire for their analytical prowess and explanatory power with regards to the present and past financial crises, for instance Richard Epstein of the Hoover Institution, Martin Feldstein of Harvard, Simon Johnson and Ricardo Caballero of MIT.
However having something meaningful to say about the national or global economy is one thing; having a clue about generating competitive returns amidst the harsh realities of investment management is another thing altogether. Read the rest of this entry »
The Post American World
In DEEP Investing, EMERGING Markets, INTELLIGENT Investor on December 12, 2009 at 10:07 AM
more about "The Post American World", posted with vodpod
The Turtles: The Most Famous Trading Experiment in History
In DEEP Investing on October 29, 2009 at 6:53 PM
Can the skills of a successful trader be reduced to a set of rules?
“We are going to grow traders just like they grow turtles in Singapore.”
–Richard Dennis in Market Wizards
The Turtle Experiment
The story, which first appears in Jack Schwager’s Market Wizards, by now has attained almost legendary status. Read the rest of this entry »
Technical Trading and Value Investing? Are you serious?
In DEEP Investing on October 6, 2009 at 1:05 AM
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Well, why not?
True: Not many value investors are coming out of the closet about technical analysis. Yet technical trading and value investing is not as controversial a union as you might think.
Merits of Rules Governed Trading
In DEEP Investing on September 20, 2009 at 2:40 PM
Do you, your broker or your investment manager have a pre-flight checklist?
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“After 20 years of trading, I find it almost impossible to trade without a plan that does not have fixed rules.”
–Robert Krauscz, New Market Wizard
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Can you imagine the pilot of a jumbo jet climbing into the cockpit, firing up the engines, and hurtling down the runway into the sky without a second thought? I mean, no checklist, no clearance from the tower, no nothin’? Read the rest of this entry »
The Intelligent Investor
In DEEP Investing on September 6, 2009 at 1:15 AM
Benjamin Graham
“Smart investors look to the market not as a guide for what to do but as a creator of opportunity.”
–Benjamin Graham
When Failure Is Not an Option: The Stewardship of Your Financial Future
In DEEP Investing on August 26, 2009 at 2:58 PM
"We have a 'zero fail' mission." Colonel Mark Tillman, head of the Presidential Airlift Group
In Pursuit of Zero Fail
When it comes to certain tasks, the consequences of failure are so negative and far reaching they are almost too terrible to contemplate.
One such task is safely airlifting the President of the United States on Air Force One. Other “no fail” occupations would be the operation of nuclear power plants and the deployment of ballistic nuclear submarines. For those involved in such work and for those whom they serve, failure is not an option. Read the rest of this entry »
On Mechanical Trading Systems
In DEEP Investing on August 16, 2009 at 9:13 PM
"Hey Biff. Is that a buy signal?"
“The greatest benefit of mechanical trading systems is their ability to reprogram traders away from destructive types of behavior in favor of successful trading habits.”
– Richard Weissman, Mechanical Trading Systems
Paris E. M. Murray