So let’s have some fun folks! “You take the blue pill, the story ends. You wake up in your bed and believe whatever you want to believe. You take the red pill, you stay in Wonderland, and I show you how deep the rabbit hole goes.” I’m sure most people are either familiar with the movie The Matrix or have heard the above quote. It’s an interesting premise I think. Let’s have a discussion and see how we can relate this to trading! To start with, I will just be open about my own personal frame of reference for all
One of the things that is most indicative of whether or not you will be a successful trader is having a trading plan or not. Having a plan will enable you not trade emotionally but systematically like a machine. A trading plan will answer these questions: How much time do you wish to devote to trading? What returns are you expecting? How much capital do you have to invest? What markets will you trade? How will you deal with a string of (20+) losses? How much will you risk per trade? How will you set your stop-loss orders? What will
Nassim Nicholas Taleb has written a series of books about risk, randomness, chance. I found it quite hard to start reading his books but then something would happen and it all just seemed to ‘click’. He is one of the most insightful authors I have read. Highly recommended. Click cover for the 4 book pack at Amazon Click below for The Book Depository Book Depository Link The individual titles, Fooled by Randomness, The Black Swan, Antifragile and The Bed of Procrustes are also available. Note sometimes these books are unavailable or come in different editions etc.
Click cover for Amazon Click link below for The Book Depository Book Depository Link Click cover for Amazon Click link below for The Book Depository Book Depository Link These books talk a lot about probability theory and history. Beat the dealer is about Edward Thorp who developed a system to beat the casinos in Las Vegas playing blackjack. I got bored with it pretty quickly. I might return to it again some time. The casinos actually changed their rules as a result of this book. We can’t have the mug punters having an edge over the
Click cover for Amazon Click link below for The Book Depository Book Depository Link This book talks about the history of risk and all the giants who have stood on the shoulders of the person before them right up to today. I read this just for interest. It did tend to drag on a bit but was quite interesting for the most part. Originally posted 2017-05-04 15:43:56.