Currently reading Options, Futures, and other Derivatives by Hull...I find this one to be the best time spent so far but i am only about 1/10th the way through it. Other books ive read include stuff from Taleb, Phil Town, Mark Douglas, Soros, Rem. Stock Operator, The intelligent Investor, and im sure there are more i am missing.
Momentum considering most of my trading has been short term of a few days or less. But like I mentioned earlier due to lack of success thus far I have basically poured my cup out looking to fill it with better info.
Buy lower than low. Sell higher than high. Now get a value area. Undervalued / Neutral / Overvalued. You can use a volume, market, profile but it’s not a necessity. You’re either for or against surprise. If you’re working for it then you’re good. If it works against you then you’re a sheep.
Can you go into a little more detail about how to work for surprise? I’m not sure I understand what you mean.
Talking about Stop loss run I believe. If they bet on lower low they will capitulate on a higher high. Hence ... Buying lower than low and selling higher than high.
I am a big fan of Taleb but paradoxically I’ve never been successful trading linear products this way. His thinking apply for non linear products I believe but for futures and stocks I prefer a high probability of winning. Not being concave holds : being at least robust. However antifragile is tough to attain because of the linearity of most products. He’s the one to read for the risk management aspect of business. Now for profitability... I would advise thorp books (Beat the dealer, a man for all market and Co)
I attempted reading dynamic Hedging and have to admit that it was just too much for me. The way he relies more on mathematics than words to explain various concepts just killed me. I liked his other stuff for the most part though. I’ve never tried to employ any of his concepts but considered the 90/10 barbell approach. I guess you supposedly achieve “antifragility” with this low/high risk ratio...seems too good to be true.
Personally I am not antifragile. But the barbell is a good overall portfolio. 90% in safe investment and 10% into speculation. Theoretically you gamble with the house’s money (From the 90% safe returns). I’ve edited my last post. Mentioned Edward thorp’s books. But seriously you have to tinker with trading. You learn by doing. I’ve not learned much in books. The major concept are Profitability and Risk. Profitability is an advantage, an edge. Risk is stay in the game.