Nice trading quote
'I honestly think struggling retail traders "psyche themselves out". In other words, it's not that professionals do extraordinary things unobtainable by retail, it's that (the best of them) are better risk managers and better at following rules of risk management & position management.'
Richard Weissman
Richard Weissman
'When you and I set out to create anything— art, commerce, science, love— or to advance in the direction of a higher, nobler version of ourselves, we uncork from the universe, ineluctably, an equal and opposite reaction. That reaction is Resistance. Resistance is an active, intelligent, protean, malign force— tireless, relentless, and inextinguishable — whose sole object is to stop us from becoming our best selves and from achieving our higher goals.'
Pressfield, Steven - Do the Work
Pressfield, Steven - Do the Work
Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.
If you want to have a better performance than the crowd, you must do things differently from the crowd.
The four most dangerous words in investing are 'This time it's different'.
If you want to have a better performance than the crowd, you must do things differently from the crowd.
The four most dangerous words in investing are 'This time it's different'.
Hmm, punting it all on a tip by a mate. Not sure that's a trading or investing maxim.
The sum zero and commission bits apply to BF.
As for slippage, let's go with Nassim Taleb's definition (from Wikipedia):
'the difference between the average execution price and the initial midpoint of the bid and the offer for a given quantity to be executed'.
Let's say I want to enter the market long when the market is at 6.0-6.2. I could either:
- Offer at 6.0. If my offer is accepted, great. If not, and the market rises further and I still want to go long, I have to offer at 6.2 and risk missing the boat again, or take at 6.4.
- Take at 6.2 initially.
Either way, unless I am filled at 6.0, I'm losing out due to slippage.
As a result, I would say that slippage applies to BF trading (although if your style is to offer speculatively and you don't care where you get matched, it's not such an issue).
Jeff
As for slippage, let's go with Nassim Taleb's definition (from Wikipedia):
'the difference between the average execution price and the initial midpoint of the bid and the offer for a given quantity to be executed'.
Let's say I want to enter the market long when the market is at 6.0-6.2. I could either:
- Offer at 6.0. If my offer is accepted, great. If not, and the market rises further and I still want to go long, I have to offer at 6.2 and risk missing the boat again, or take at 6.4.
- Take at 6.2 initially.
Either way, unless I am filled at 6.0, I'm losing out due to slippage.
As a result, I would say that slippage applies to BF trading (although if your style is to offer speculatively and you don't care where you get matched, it's not such an issue).
Jeff
Euler wrote:But a lot of that doesn't apply in the sports market.Ferru123 wrote:A view which Zenyatta will doubtless agree with!
I've never gone in big on a tip from a mate, but I've made big bets on what I thought were high probability trading outcomes, and ended up red faced. I imagine it's quite common.
I once knew someone who bought £20K of Lloyds TSB shares because he thought the price would rise after a government announcement. It actually fell. I disliked the guy, and took pleasure from him losing money due to his own hubris!
He had a macho attitude to losing money, but didn't realise that, whilst losses weren't to be feared, they should be kept to a minimum!
Jeff
I once knew someone who bought £20K of Lloyds TSB shares because he thought the price would rise after a government announcement. It actually fell. I disliked the guy, and took pleasure from him losing money due to his own hubris!
He had a macho attitude to losing money, but didn't realise that, whilst losses weren't to be feared, they should be kept to a minimum!Jeff
Euler wrote: Hmm, punting it all on a tip by a mate. Not sure that's a trading or investing maxim.
I think the general problem with tips is that you can blame somebody else, when in fact you should always make your own decisions as if forces you to think them through. You also have to accept responsibility when they go wrong.
Not aiming this at you particularly Jeff, but having just returned from the US I'm always on such a high. Met loads of people and we all talked open and honestly about the various aspects of what we do, but the 'can do' feeling and positivity in the discussions always really strikes me when I'm in the US. You feel anything is possible. But it's not a blind optimism, its just a 'lets see what we can do' sort of optimism.
I've offered to help a hedge fund there and they are going to try and reverse into a sports insurance company and, if successful, we may actually be able to list on Nasdaq within a year. Fair few hurdles to overcome but it's an interesting diversion.
I've offered to help a hedge fund there and they are going to try and reverse into a sports insurance company and, if successful, we may actually be able to list on Nasdaq within a year. Fair few hurdles to overcome but it's an interesting diversion.