The Reading List

What I’ve been reading in the trading and finance space:

The Millionth-Of-A-Second Advantage:

Traders’ quest for the slimmest sliver of advantage is as old as markets. In the 19th century, Reuters used carrier pigeons to speed the delivery of stock prices. More recently, Chicago pit traders donned platform shoes so they could see and be seen better on crowded trading floors. Today, getting an edge is all about the speed of light: 186,282 miles per second.

Ray Dalio On Recessions:

Because the markets weakened and Fed officials now see that the economy and inflation are weak there has been a shift to an easier stance by the Fed. Similarly, because of weaker markets, economies, and inflation rates in other countries, other central banks have also become more inclined to ease, though they have less room to ease than the Fed.

Sparking Creativity:

Just get started. You can even play games with this. If you’re stuck, “bargain” with yourself that you’ll “just spend 5 minutes on this…” and then do so. Over and over.

Understand what’s already been done. You really can’t be creative without a pretty good understanding of what other people have done before you. In the arts, this drives to vocabulary, technique, and style.

Luck:

Analysts at S&P Global examined the returns of more than 2,400 investors based in the U.S. Unsurprisingly to anyone who has followed the active-versus-passive debate in recent years, less than a third were able to beat their benchmarks in the three years to September 2015 on an annualized basis and once fees are taken into account.

Losing vs Winning:

When we lose money and have a chance to win it back right away, or even come out ahead, not only do we take more risk, but we take even bigger risks and thereby subject ourselves to even bigger losses. If we want to avoid loss, it would be better to just walk away. The break-even effect explains your conviction that the next hand of blackjack or the next coin in the slot machine will make you whole or win back your money and then some.

ESMA Strikes Again:

The latest addition to the this group of countries is the Netherlands, as the Dutch Authority for the Financial Markets (AFM) has unveiled its plans to ban binary options and to introduce restrictions to the offering of CFDs to retail investors in line with ESMA’s rules. These, however, will not be temporary but will last permanently.

151 Trading Strategies:

We provide detailed descriptions, including over 550 mathematical formulas, for over 150 trading strategies across a host of asset classes (and trading styles). This includes stocks, options, fixed income, futures, ETFs, indexes, commodities, foreign exchange, convertibles, structured assets, volatility (as an asset class), real estate, distressed assets, cash, cryptocurrencies, miscellany (such as weather, energy, inflation), global macro, infrastructure, and tax arbitrage.

Have a nice weekend!

Felix

I'm a full-time, independent forex trader. I've been trading for over 10 years and specialize in price action trading, reversal trading, trading psychology and algorithmic trading. If you're determined to become a pro trader, I offer a select pro trading program. When I'm not trading, I'll either be travelling the world or rock climbing (likely both). Read my story here.