If you’re in it for the long haul, you need to know the rules—that the news doesn’t matter much, the markets are random and active trading beats long-term investing. Just when you think you know it all, you find there’s a lot left to learn. In my case, the lessons began in earnest after I … Continued
Three Rules for Longevity as an Active Investor
Prepare for almost anything by outlining and organizing a trading response for every for every short option position Investors should formulate a contingency plan as soon as they place a trade. In the example of trade management below, the flowchart lays out actions to take for several possible scenarios. Improving mechanics this way is a … Continued
Understanding the differences and similarities between futures and equities Even investors with plenty of experience trading equities and exchange-traded funds (ETFs) may find the leap to futures a bit daunting. Futures can be big, and they move fast enough to steamroll the unprepared. But once an investor becomes familiar with the difference between stocks and … Continued
Professional traders dwell in a complex landscape of uncertainty, probability assessment, decision-making and risk. They also wield powerful digital trading capabilities unimaginable only a few decades ago. It’s no longer a ticker-tape world where insiders with seats on the exchanges enjoy advantages unavailable to the outside world. The digital revolution has democratized trading, opening the doors … Continued
It takes a certain type of economist—someone who’s devoted years to analyzing data but also possesses a keen eye for the quirks that guide humanity—to take apart, scrutinize and explain risk. And that’s why Allison Schrager’s provocatively titled book, An Economist Walks Into a Brothel and Other Unexpected Places to Understand Risk, makes for a … Continued
Certain souls become passionate about trading. Market dynamics fill them with adrenalin, feed their competitive urges and sometimes pad their bank accounts. They’re glued to their screens, searching for an edge, trying to take home a profit and hoping to avoid a loss. The game is pure and simply fascinating. Like life itself, the markets … Continued
This book on the process-driven approach to decision-making is an essential addition to any active investor’s library.