Archive for Boris Schlossberg

Trading is NOT Real Life

In our Anglo-Saxon, Cartesian driven advanced industrialized world, facts rule. Whether you are a Google engineer, a designer for Apple or just a regular joe schmoe — your life is governed by the physical reality of the world around you. As Nate Silver proved with his 2012 election call knowledge of facts is what separates [...]

Stairway to Heaven

One of the oldest and most common truths of the financial markets is that price goes up in a staircase but comes down in an elevator. The yen trade this Monday was just the latest example of this time worn phenomena. It is also the reason why the majority of market players be they investors [...]

The One Mental Trait You Need to Trade for Twenty Years

This week NY Times did a profile of Martin Brodeur the New Jersey Devils inimitable goalie who has been minding the nets for the hockey team for the past twenty years. When I was young I used to play goalie in hockey and it was one of the more brutal physical experiences of my life. [...]

What Ray Dalio Can Teach Us About Reality of Trading

Ray Dalio the founder of Bridgewater Associates — the world’s most profitable hedge fund in terms of dollar volume is known as a proponent of radical honesty. Some critics view the whole Bridgewater culture as bordering on a cult, but the more I read Dalio’s writings the more I am convinced that he is right. [...]

The Secret To Trading Well

Last week in my Day Traders Manifesto I mentioned that tactics are more important than analytics. That’s a topic worthy of deeper discussion. Basically when we are doing analytics we are asking the question — What do I think will happen? When we are dealing with tactics the question becomes — What will I do [...]

The DayTraders Manifesto

I recognize that I will make many decisions every trading day I recognize that I every day I will be wrong I recognize that there may be days, weeks and months when I will lose money I recognize that the best traders in the world make 100-200 pips per month I recognize that trading is [...]

Ray Dalio’s Three Lessons That Every Forex Trader Should Know

The other day Andrew Ross Sorkin interviewed Ray Dalio who runs Bridgewater Associates, the worlds largest and most profitable hedge fund. The interview took place in Davos against the crisp background of the Swiss Alps and Mr. Dalio had a full half hour to expound of the art of investing. Here are three of his [...]

FX – Zero Sum? Who Cares?

This week FX Street asked me to weigh in debate as to whether the FX market is a zero sum game. The two opposingviews can be found here Richard Olsen: http://www.fxstreet.com/education/forex-basics/trading-forex-is-a-positive-sum-game/2012/10/31/ John Forman: http://www.fxstreet.com/education/forex-basics/retail-forex-trading-is-a-negative-sum-game/2013/01/17/ So if FX a zero sum game? Of course it is. Just read John Forman’s article on the difference between asset [...]

Trading is Unfair

If you’ve ever been beaten by some crazy, pull out your a- card combination like a back door straight or a flush then you’ll appreciate what have to say. I never play poker, in fact I am not even sure what a back door straight is, but I do engage in probabilistic behavior every day. [...]

No Argument From Me

One of Twitter followers wrote today,”Markets are Markets,if people removed the emotion, they could make money in any market, who cares if its NOK,T-Note,GLD,ES etc.” True I thought, but if markets removed emotion from the game then they would eliminate most of the trading profits. Trading profits come from emotion. It’s the skew in asset [...]