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.
- "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.
- "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.
- If Gundlach is talking your book, take it back to the library.
6 comments:
These are brilliant insight. These are like Zen aphorisms for financial markets.
Great post.
He he he he he, this is great stuff Polemic!
I don't know if you caught Gavyn Davies' FT blog article on 'nowcast' developments last week?
The Fulcrum nowcast is definitely quite strong.
http://blogs.ft.com/gavyndavies/2016/04/20/important-developments-in-us-nowcasting/
did you see the horseman capital management piece on Italian banks? "market views" basically, pointing out the fear was overhyped
And another good post from Mr Davies. Always worth a read:
http://blogs.ft.com/gavyndavies/2016/04/24/is-there-a-new-plaza-accord/
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