Readings: Capital Markets Lab, Cover Stories as Contrarian Indicators, DaVinci & trading
- Capital Markets Lab: Dedicated to Scientific Observations in Financial Markets
A nice collection of articles, like this one - Bleed or Blowup? Why Do We Prefer Asymmetric Payoffs?: We link the acceptance of the occasional large loss for a steady small profit (as opposed to the opposite payoff) to elements of prospect theory and the research on well-being and the hedonic treadmill effects.
Statistical testing implied that positive stories generally indicate the end of superior performance and negative news generally indicates the end of poor performance.
- DailySpeculations: Last Suppers for a Lifetime
8. When the markets are not open or the market isn’t acting right for you then study past trades and memorise the actions you took and piece together the trade again looking for the lesson.
14. Be aware of views you are taking on a trade. Look at it always as if it’s the first time you have seen it and review an open trade every day as if you have just placed it.
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