Lord knows I’ve been stuck in this vortex many a time.
Related reading:
Sleeping and Trading –Daily Speculations
Briefly Speaking, from Victor Niederhoffer –Daily Speculations
There are many speculators who have an inclination to trade during night hours. Such behavior exposes one to the possibility of premature death, according to a study of Penev et al "chronic circadian [...]
How Fairness Is Wired In The Brain -ScienceDaily.com
Now, researchers at the California Institute of Technology have discovered that reason struggles with emotion to find equitable solutions, and have pinpointed the region of the brain where this takes place. The concept of fairness, they found, is processed in the insular cortex, or insula, which is [...]
The odds are stacked against us - Guardian
The single most pernicious threat to liberty today is humanity’s natural
tendency to misunderstand the statistics of rare events. We’re just not wired to have good intuition about things that happen with extreme infrequency.
I’ll prove it. If we were good at understanding statistics, then here’s what would happen when [...]
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Talks Joshua Klein: The amazing intelligence of crows
Even crows succumb to ever-changing-cycles. Besides being a fascinating display of the crow’s intelligence, notice how once one learns a new trick, they all learn the trick, in some cases ruining a good thing for the inventor.
Gin, Sitcoms and the Cognitive Surplus
The classic example of cognitive surplus [...]
It’s Fortune magazine, August 2000, Special Investors Issue, Retire Rich
Article: 10 Stocks to Last the Decade
And here’s the list:
Stock
Ticker
Price
P/E
Comment
Broadcom
BRCM
$237
255
Maker of chips used in the next generation of entertainment devices
Charles Schwab
SCH
$36
56
Former discount broker that has grown up along with its boomer clients
Enron
ENE
$73
51
Biggest online broker for coal, oil, and gas; next up — broadband
Genentech
DNA
$150
128
Offers a huge pipeline [...]
Wikipedia
The gambler’s fallacy, also known as the Monte Carlo fallacy or the fallacy of the maturity of chances, is the false belief that the probability of an event in a random sequence is dependent on preceding events, its probability increasing with each successive occasion on which it fails to occur. If a fair coin is [...]
Why are trading gurus always telling us to pore over our trading tickets and analyze our trading mistakes? Bullshit! Seriously, you should have a plan and a tested hypothesis before you ever make a trade. If you gotta look back at your trades to figure out what you did wrong, the thing you did wrong [...]
I happened on an article about black swans, as Nassim Taleb had recently been speaking at a CFA (Chartered Financial Androids) function and a reporter for the Financial Times was in attendance, blogging, not reporting, because as we all know the two are very different. I wondered with all the talk of recession, and [...]
5 Ways to Go Broke Getting Drunk
When does a shot of scotch cost $3,300? When the bottle’s going for $38,000 and hits $75,000 in a bidding war. Amazing Google capability: Enter ‘number of shots in a liter’ into Google Toolbar and before you hit enter AJAX serves up the answer of 22.5426817 shots, which [...]
Learning from our mistakes? Flies can do it. Lots of Animals Learn, but Smarter Isn’t Better
It takes just 15 generations under these conditions for the flies to become genetically programmed to learn better. At the beginning of the experiment, the flies take many hours to learn the difference between the normal and quinine-spiked [...]
The more George Soros talks, the less people care what he thinks.
What the hell really happened to Crocs?
This pretty much says it all:
Harper’s gets it, why didn’t shareholders? In a word: greed.
Cost of carry model to price forwards & futures
The Great Depression Debate
Bernanke and many other economists believe the Fed’s failure to bail out stricken banks between 1929 and 1932 was one of the main reasons the Depression lasted so long. In 1932, Herbert Hoover established the Reconstruction Finance Corp., which lent to banks, railroads, and other troubled businesses but failed to reverse the [...]
Gullibility: Bloggers are suckers for a good headline
There’s no end to the back and forth bashing between bloggers and traditional journalists. Journalists have felt threatened by bloggers really because blogs are too immediate. That doesn’t fit with the process and techniques reporters are taught in journalism schools. With blogs everything they’ve spent years learning seems to go out the window. But really [...]