[img] Still our favorite trade... Via http://www.mercenarytrader.com/2012/09/gray-swans-and-fat-tails/
Are you kidding? 2.5% risk per trade is a lot. Put ten trades on at that size, get them all wrong, and you are down 25%. I have been to Seykota's...
Gray Swans and Fat Tails The idea of the Gray Swan - a riff on the Black Swan - is a potential catastrophe that is not only foreseeable, but...
[img] EURUSD failure here would be consistent w weekly downtrend
Why does this matter? North Korea has been pumping out supernotes for years. Actually they don't. The idea that a country can buy its way out...
Trading Wisdom 29: Reading Smart "It is very hard to read in the office, what with interruptions from phone calls and the inevitable seduction...
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Is China the Biggest Malinvestment Case of All Time? If there is a credible counter-case as to how China will evade all the lessons of history,...
Yep, and that shows the diversity of volatility tolerance... I would consider 20% DD below the zero line a worst case outcome bordering on...
Trading Wisdom 28: Stupid Money "Much has been written about panics and manias, much more than with the most outstretched intellect we are able...
In a risk on melt-up everything (mostly everything) goes up. Algos and permabulls shoot first and ask questions later as shorts are forced to...
[img] via http://www.mercenarytrader.com/2012/09/fantasy-island/
Fantasy Island From a chart perspective, the aftermath of the Fed's action is defined by a surprising number of island tops. Bernanke created...
We don't have a 70s-style backdrop in which monetary velocity is increasing and wages are being negotiated higher. Baby boomer credit is also much...
Trading Wisdom 27: When Volatility Matters "Volatility matters when you feel it. All the charts, ratios and advanced math in the world mean...
What sushi and trading have in common: http://www.mercenarytrader.com/2012/09/what-sushi-and-trading-have-in-common/
[img] SP, UUP via http://www.mercenarytrader.com/2012/09/what-happens-after-infinity/
What happens after infinity? All told, we actually find it a less frightening notion to see the Federal Reserve as epically corrupt versus...
Most mutual funds (and long only hedge funds too for that matter, which constitutes the majority of equity-based hedge funds) don't even recognize...
Yep. The view that Jimmy Rogers and others promote is that Bernanke and co. are simply stupid. But this seems illogical. Are these guys really...
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