ZF Capital > 2009 October

Trader Vic: Methods of a Wall Street Master by Victor Sperandeo

On October 9, 2009, In Book Reviews, by ElfLord

Victor Sperandeo says that if there were a Hall of Fame for trading he wouldn’t be in it but he sees himself as a career pro who consistently performs at an elite level year after year. In fact consistent performance is his central theme, which he says requires not only a successful approach to trading but to life itself. He delves into this in the second part of the book that is dedicated to the psychological approach.

The main topics in this book include: Preservation of capital, consistent profitability, technical analysis and trading rules. He tells how to spot a trend and discusses technical analysis. How to spot the tops and bottoms in any market. There is also a lot of detail about economics and what makes the system tick, which as he says he didn’t learn in school. Moving averages, booms and busts, and how to manage risk and have a good business philosophy for consistant success are also part of this well written book of trader knowledge. He covers a great deal of useful information in a very compact form that is actually easy to read and understand. (more…)

Thought of the Day (October 9, 2009)

On October 9, 2009, In Thought of the Day, by ElfLord

I think that successful traders have a personality, that they’re not afraid to have nineteen losing trades out of twenty, because the twentieth can be a trade that’s much greater than all the nineteen put together. They’re not hung up on losing money. They want to protect what they’ve got and wait for an opportunity to make a lot of money.

– George Segal

Tagged with: George Segal

Tradecraft – The Case for Bonds

On October 9, 2009, In Good Articles, by ElfLord

WHAT MAKES ME strong in my convictions is that I’m always ready to abandon them. As a trader, I have no allegiance to one stock, sector, analyst, idea or asset class. My only loyalty is to the bottom line.

And while we are influenced by the past, we live and trade in the present. TV’s talking heads have an explanation for everything, but the truth is there are no rules for how the market “should” act.

So in positioning my portfolio, I start by erasing any preconceived notions about how a trade might turn out. It’s a technique that entails keeping not only your eyes open, but your mind as well. In short, assume nothing. When everybody knows something is so, it usually ain’t.

One of the things everybody knows is so: When the Federal Reserve cuts interest rates, the stock market rises. But after six rate cuts and seven months, the big caps are still underwater year-to-date. Fighting the Fed hasn’t exactly been that bad a strategy lately. (more…)

Tagged with: abondoning preconvictions • bond trading

Thought of the Day (October 8, 2009)

On October 8, 2009, In Thought of the Day, by ElfLord

Confidence, in short, means knowing you’re going to win. It isn’t a magic quality which once possessed can never be lost. To be sure, regular winners will have an inner conviction that they must win over time, if they play to the rules. This is partly an inherent state of mind and partly the result of long experience of seeing the rules working. But no one but a fool is convinced they can win just by playing. You win by doing your homework better, following the rules more closely, and acting more consistently then the other players. Winning gives you confidence and confidence helps you win. The closer you get to only trading when you’re confident you’ll win, the higher your win rate and your confidence will be.

– John Percival, The Way of the Dollar

Tagged with: John Percival

Thought of the Day (October 7, 2009)

On October 7, 2009, In Thought of the Day, by ElfLord

In fact, everybody is a success. That startling declaration rests on the fact that unconsciously, we basically get what we want. The primary problem is that once obtained, we realize that what we got is not what we truly wanted, resulting in boredom, escapism, mysterious fatigue, migraines, and the much-dreaded ’midlife crisis.’ We’re pretty good at getting what we think we want in life; the real problem is ascertaining what it is that we really want.

The unconscious is a compelling force within the essence of our ego; it operates on a level that is invisible and all-powerful, such that growing up intellectually does not mean we necessarily grow up emotionally. Some people overcome their infantile fantasies and others do not, resulting in the normal and the neurotic – even though neither person any longer consciously demands the impossible. Excessively blaming parents is a hallmark of the latter.

– James Dines, Mass Psychology

Tagged with: James Dines

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ZF Capital

Trader Vic: Methods of a Wall Street Master by Victor Sperandeo

Thought of the Day (October 9, 2009)

Tradecraft – The Case for Bonds

Thought of the Day (October 8, 2009)

Thought of the Day (October 7, 2009)

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