Archive: May, 2009

The way we see it, the brain will always win in the end so why not get started as soon as possible on working in concert with a brain and a body that work together to assess and address uncertain situations – price movement or sand traps.

The thing is – all of this requires both a change in perspective and more importantly, putting the same effort into understanding your internal signals as you put into the ones the market is providing!

Back in March I read Alpha magazine’s ranking of the 25 top hedge fund managers and was struck by the reported fact that Renaissance Technologies’ disparity between their funds. The flagship fund produced an 80% return, (after fees!) in 2008 but it open only to “partners, employees, ex-employees and friends”. According to Alpha magazine “Outsiders [...]

learning how to leverage emotional data – both as a risk management tool and as a tactical judgment factor is an investment that will pay off in spades (and trades).

Everyone thinks the market is a game of numbers. We use complex models, umpteen oscillators or retracement calculations and even a fundamental analysis of supply and demand – all based in numbers and about numbers.

But in reality, the numbers of the market are but an illusion.

The simple (but not easy answer) is all you need to do is understand the feelings – preferably both macro level (what you expect of yourself and echoes from your past) and micro or in the moment reactions to the result of a trade or price movement.