Talibi’s books “The Black Swan” and “Fooled by Randomness” argue, reasonably convincingly, that extreme events are under priced in the current market due to a lack of experience and the over reliance on mathematical models in trading. To take advantage of this they advocate a “dumbbell strategy” which basically is that 80% of assets are [...]
Posts Tagged ‘markets’
Will The Market Keep Falling?
If you’re thinking about shorting the market either through contracts for difference or financial spread betting it must seem quite tempting now. The market is having a bad January so far. But the question is whether it will keep falling. As always we can give one answer with total certainty: We don’t know. All that [...]
January 29th, 2010
IndependentInvestor What Is An Investment Lifecycle, And Why Does It Matter?
As human beings we are blessed (or otherwise) with not knowing when we will die. This means that we are not quite sure where we are in our physical lifecycle. However we actually have a pretty good idea of where we are in our investment lifecycle. The investment lifecycle is simply where you are in [...]
January 28th, 2010
IndependentInvestor Financial Spread Betting Over Christmas – Volatility Can Strike
One of the worst things about trading in the Christmas period is the volatility. One of the best things about trading in the Christmas period is the volatility. The Christmas period, which lasts from the third week of December to the second week of January is a notably frisky period for just about any trading, [...]
December 23rd, 2009
IndependentInvestor Which Market That You Would Like to trade?
Trading plan must have complete sets of rules, which cover each aspect of trader’s trading. What instrument (forex, shares, financial spread betting, options, CFD and so on) you would like to trade & why? I trade stock & forex not just because I like forex or stock market I have an definite reasons for trading [...]
September 4th, 2009
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