Sunday, 7 January 2018

Ten General Takeaways from Q&A with Marty Schwartz

Ten takeaways from Danny Riley's interview with Marty Schwartz:

1. Qualitative and quantitative pattern recognition helps him successfully adapt to the rise of algorithmic trading. He uses the habits of algorithms to his advantage.

2. He advises against Pyramiding.

3. Back-tests can deceive. Markets keep changing. What worked yesterday won't necessarily work today, so be flexible in your approach.

4. Search out ways to adjust your strategy to fit the current conditions.

5. Old dogs can learn new tricks. The last five years have been some his best in terms of returns.

5. Most work is done after market hours and outside of actual trading.

6. He sincerely believes that anything can be achieved. Any limitations that you put on your performance will be the hurdle rate for someone else.

7. No one should outwork you.

8. "You can't desire action more than you want to win."

9. Given the number of tradeable financial products created since the '80s, opportunity is greater for us today than it was for him 20-30 years ago.

10. He was among the first to trade the SP500 futures when they were listed on CME in 1982.

Quote of the Day

"You can't desire action more than you want to win." -- Marty Schwartz

Saturday, 6 January 2018

Milton Friedman - Understanding Inflation

Ontario's minimum wage increase is officially in effect and the response from business owners isn't being received very well by the politicians. Nevertheless, a 32 per cent increase in the minimum wage is significant additional evidence of mounting inflation that is making its way into the labour market. Here is great 15 minute primer on Inflation by Nobel Prize-winning Economist, Milton Friedman.

Wednesday, 3 January 2018

Quote of the Day

"I sometimes think that speculation must be an unnatural sort of business, because I find that the average speculator has arrayed against him his own nature. The weaknesses that all men are prone to are fatal to success in speculation—usually those very weaknesses that make him likable to his fellows or that he himself particularly guards against in those other ventures of his where they are not nearly so dangerous as when he is trading in stocks or commodities" - J.L.

Tuesday, 2 January 2018

Yellow Day for first trading day of 2018