How Much Pain Can You Take? Risk, Hindsight, Consistency And Paper Trading

The risk is real, and trading is not easy. The above quote is from page 110 in Curtis Faith’s The Way of The Turtle. A great book! This sentence captures the essence of trading: a very difficult endeavor that ultimately leaves your inner strength exposed. It all looks so easy when looking at fictive equity…

Negatively Skewed Distribution in Trading Strategies? – (Definition, Example and Histogram) – Fat Tail

What is negatively skewed distribution in trading strategies? Negatively skewed trading strategies are “accidents waiting to happen”: You have many small winners and rare big losers. Unfortunately, the big losers can put you out of business. This is what a negatively skewed distribution in trading strategy is – you need to understand the profit distribution…

Be Aware Your Ego, Be Humble And Open Minded In Trading (Case-Study: Okumus Capital)

Be Aware Your Ego, Be Humble And Open Minded In Trading (Case-Study: Okumus Capital)

Once in a while, I grab one of my about 100 trading/investing books. This is mainly to get inspiration and perhaps one or two ideas to test. The best books for inspiration are the Market Wizards by Jack Schwager. Over the weekend I read the chapter about Ahmet Okumus from The Stock Market Wizards. He…