Joel Greenblatt published a formula that beat the market, told everybody exactly how it worked, and watched it continue to beat the market. That should be impossible. An edge announced in a bestseller ought to be arbitraged into nothing within…
GREATEST TRADERS · EPISODE 34 Anthony Bolton Britain’s Star Stock Picker for 28 Years ▶ Watch on YouTube🎵 Listen on Spotify Also available on Apple Podcasts · Amazon Music In October two thousand and three, the most powerful media baron…
More trading fortunes have been made and destroyed on the NASDAQ than on any other index in the modern era. It is the home of the companies that rewired the world — and the venue for the fastest, most emotional…
Hyman Minsky spent a career arguing something that sounds like a paradox and is a mechanism. Stability is destabilising. A long calm period does not reduce the probability of a crisis. It manufactures one, and it does so through the…
SNAPSHOT · 4 AUGUST 2026 SpaceX reported its first quarterly results as a public company after the US close on Tuesday. Revenue of $7.81 billion beat consensus near $6.9 billion. Adjusted EBITDA of $3.5 billion beat $2.0 billion. The net…
Charlie Munger said he had underestimated the power of incentives his whole life, and he was not a man who underestimated things. His formulation is worth memorising. Show me the incentive and I will show you the outcome. Not because…
Trader’s Library · Book Review The Psychology of Money by Morgan Housel Explore all 80 books in the Trader’s Library → Most money books try to make you smarter. Morgan Housel wrote one that tries to make you behave. The…
Every time a card taps a terminal, somewhere in the world, hundreds of times every second, a tiny fraction of a cent flows to a company most people never think about. Not the bank that issued the card. Not the…
The first year of trading is not where you get rich. It is where you either build the habits that let you survive, or learn the expensive way why most people quit. The traps are predictable. That makes them avoidable.…
You had a very good month. The system clicked, the reads were clean, and something changed in how you see the market. Next month will be worse. Not because you will do anything wrong. Because the month you just had…
GREATEST TRADERS · EPISODE 33 André Kostolany The Wandering Speculator Who Became Europe’s Market Sage ▶ Watch on YouTube🎵 Listen on Spotify Also available on Apple Podcasts · Amazon Music In the autumn of 1996, a ninety-year-old Hungarian-born Frenchman in…
Risk is a roulette wheel. You do not know where the ball lands, but you know the wheel: thirty-seven pockets, one zero, and a house edge you can compute to four decimal places. The outcome is unknown. The distribution is…
EP12 · The Trader’s Physical Edge The Social Environment You are the average of the traders around you. Audit the average. Pillar 5 of 5 · ENVIRONMENT A trader takes a six-figure loss on a Tuesday afternoon. The trade was…
Sharpe needs a standard deviation and a risk-free rate. Sortino needs a target return and a denominator most software computes incorrectly. Calmar needs a high-water mark and three years of history. The gain-to-pain ratio needs addition. Jack Schwager popularised it…
Every backtest report you have ever opened leads with profit factor. Every EA vendor quotes it. Every strategy marketplace sorts on it. It is the single most visible number in retail trading software. It is also the easiest number in…
Sharpe and Sortino both measure the same abstract thing: the wobble in your return series. Neither measures the number that actually ends trading careers. Nobody quits because their standard deviation was elevated. They quit because they were down 42% from…
The Sharpe ratio has one flaw that everybody notices within about ten seconds of understanding it: it treats your best month as a problem. Standard deviation counts distance from the average in both directions. A +11% month and a −11%…
There is one number that decides where hundreds of billions of dollars get allocated every year, and almost every retail trader who quotes it is quoting noise. The Sharpe ratio is the closest thing finance has to a universal scorecard.…
First-level thinking: this is a good company, so buy it. This is a strong trend, so go long. This is bad news, so sell. Howard Marks’s objection is not that these statements are wrong. It is that they are almost…
Jim Rohn's philosophy of personal responsibility, daily disciplines, and the seasons of life provides the foundational framework that all trading psychology builds on. His teaching that you are the average of the five traders you follow is the most practical environmental intervention available.
Every trader reviews his losses. It feels like the responsible thing to do, it feels like work, and it is very nearly useless. Brett Steenbarger, who came to trading from brief therapy rather than from the market, brought with him…
Before dawn on January 5, 1914, in a freezing Michigan winter, thousands of men gathered in the dark outside Ford’s plant in Highland Park. Some had arrived at three in the morning to hold their place. They had come because…
Every few months somebody declares the AI trade a bubble. A few weeks later somebody else declares that this time is genuinely different. Both camps reach for the year 2000 as their reference point, and both usually stop at the…
Your setup wins forty-one percent of the time. You know this, because you counted, once, a while ago. It does not feel like forty-one percent. It feels like a good setup. It feels, if you are honest, like it works…
Subscribe and get the 8-page Trading Plan Template free — includes pre-session checklist, trade journal, risk rules, and weekly review system. Plus weekly insights on psychology, strategy, and risk management.
No spam. Unsubscribe anytime. Free forever.