Author: ethan
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Making Decisions In The Face of Uncertainty
A close friend of mine likes to manage his investments personally. He is a beginner in investing and sets his investment horizon on the medium to long term. One fine day he gave me a ring to ask for my advice. He says he is a trend follower and uses simple rules to keep his…
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How Do I Know If A Trading Approach Is Still Working?
In recent years, markets have become more volatile and many traders are having difficulty adapting. When the going gets tough, traders inevitably ask themselves “Is my trading approach still working? Do I still have an edge in the markets?” To answer that question, we must first understand that all trading approaches / strategies require certain…
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Probability Vs Certainty
One weekend afternoon, I received a phone call from one of my friends who was learning to trade options. He is a diligent trader who always analysed his trades after they are closed and made it a point to read up on trading. This time round, he had a few losing trades in soybeans. After analyzing his…