Thursday 21 April 2016

Polemic's trading aphorisms

As there appears to be no regulatory body of trading aphorisms, who would test, affirm and endorse each with a trade body stamp and certificate (£19.99 for members), I will throw in my own, garnered from recent experience. 

Polemic's Trading Aphorisms

- Never short the Dax when you think it's blinding obvious to short the Dax.

- The best time to enter a position is just after you have been stopped out of it.

- Correlations work really well until you put the trade on.

- Buy low, stopped lower. 

- Selling new highs is like buses. You wait ages for one, but as soon as you step aboard another one comes along.

- Adding to winners gets your stops done faster. 

- If it begins with a J it will have your arm off. 

- Academics aren’t rich because they missed the trade whilst writing about the last one. 

- The FTSE responds to many things, just not the things you know. 

- There is always an algo ahead of you, get over it. 

- A forgotten order is always a losing order. 

- Dealing from a train on a tunnel ridden route makes Russian Roulette look lame.

- "China to blow up one day" will remain a meme longer than you can remain short. 

- You will never be the first to trade the news, so fade it and hope.

- If there is absolutely no chance of your stop being done on the Sunday night open, it will be. 

- It's less embarrassing to say you were up watching porn than the Chinese open.

- If someone mentions Fibonacci, there's no data out.

- "Italian banks to blow up Italy one day" will remain a meme longer than you can remain short. 

- Most short term positions end up in long term books.  

- Whatever you tell your mum, you are gambling.

- If Gundlach is talking your book, take it back to the library. 


K. said...

These are brilliant insight. These are like Zen aphorisms for financial markets.

Al said...

Great post.

CV said...

He he he he he, this is great stuff Polemic!

Al said...

I don't know if you caught Gavyn Davies' FT blog article on 'nowcast' developments last week?

The Fulcrum nowcast is definitely quite strong.

Anonymous said...

did you see the horseman capital management piece on Italian banks? "market views" basically, pointing out the fear was overhyped

Al said...

And another good post from Mr Davies. Always worth a read: