- in Good Reads by Cesar Alvarez
What I am reading: 6/30/2014
Recent articles that I found interesting.
We’re all Smart
When everyone in your field of choice is intelligent it’s much harder to separate yourself from the crowd. The paradox of skill is what makes it so difficult to beat the market over time. Finding undervalued assets isn’t as easy today as it was in the past because there are more smart people who know where to look. …
Trend following does not work on stocks
There’s a good reason why most professionals who apply models similar to trend following to stocks call them momentum models. It’s not just a clever rebranding, it’s really a very different game. To blindly cling to trend following as a religion, disregarding any real world evidence and attacking anyone presenting ideas that differ to the trend following mantra is not only unprofessional, it’s outright dangerous….
Is your risk random?
Your trading model might have a random risk element and you might not even be aware of it. In particular longer term models need special care to avoid ending up with random risk. …
Where Have All the Traders Gone?
What is causing the plunge in trading volume (and volatility)?