The NY Times esteemed Op-ed and they leave out the best part – as mentioned in our earlier post today. It is all fine and well to notice that we behave irrationally, it is all fine and well to say that some things are Black Swans… what it is NOT fine and well is to [...]
Archive: October, 2008
” Lo went on to say that research in the past decade shows that rationality and emotion are not as dichotomous as we might assume.? In fact, he says that we need to be able to feel emotion in order to be ?logical?.? In other words, emotion and logic are two sides of the same [...]
Uh…. up almost 1000 points at the relative speed of light? The pace of the markets has changed a bit wouldn’t you say? In other words, take a quant driven hedge fund, add an intraday momentum algorithm, put a server at the exchange and HOLD ON for dear life. For now let’s call this “quants [...]
The unexamined truism, old wives tale advice … from a CNBC guest blog …scroll down the the part where it says this -”2. These are trading markets where the ability to execute without emotion is the key to success.” I realize that neuroeconomics is a new field and that the word hasn’t gotten out yet [...]
Wow – what a chopfest. … which I have heard is the sign of a bottom. I could really see and feel the fight for value – with about equal players on both sides. Hard NOT to get aggravated in that and even harder to apply the “well if it can’t go down, it must [...]
What do our brains do when a down-trend becomes an avalanche – when some snow gets rolling at the top and picks up steam and snow and speed until it hits bottom – with no regard for anything in its way? Two things to know – First, it tends to assume it will get the [...]
The WSJ’s Intelligent Investor … The weekend edition of the WSJ included Zweig’s column on fighting the herd mentality. In many ways it is good article… but it does what all articles and commentary seem to do… in the end it says “get rational”. The problem with this is when you feel terrified it is [...]
It is all too easy to forget the underlying mechanics of price movement. Price chops around in a small range (remember when it did that) when very few buyers/sellers (PEOPLE) have any real conviction (FEELING) or need (MOTIVATED = feeling) to buy or sell. On the other hand, price moves directionally when many buyers or [...]
Markets are nothing more than the reflection of human beliefs and feelings. It doesn’t matter how anyone decides upon a price at which they might buy or sell, once they “are in” it is a belief about the future (10 seconds or 10 years) that is at least the underlying REASON (ironic) they have a [...]
a 1000 points???? are they kidding……. Richard Bookstabber in Demons of our Design had it right when he described how interconnected all trading and all markets are…. the only part he didn’t really cover in detail is this: it is NOT fear and greed – it is fear and fear2. Fear2 is the fear of [...]