Mac Murray

Archive for the ‘DEEP Investing’ Category

Cybernetic Trading Systems

In DEEP Investing, INTELLIGENT Investor on January 4, 2011 at 2:59 PM


“Cybernetics was defined by Wiener as ‘the science of control and communication, in the animal and the machine’—in a word, as the art of steermanship.”

–W. Ross Ashby


CYBERNETIC TRADE CONTROL SYSTEMS

Cybernetics embodies a multi-discipline theoretical framework which focuses on goal-directed systems.  These systems use information, models, and control actions to steer towards and maintain a predefined objective while attempting to counteract anything which detracts from this objective.

Perhaps the most fundamental innovation of cybernetics is its explanation of purposiveness, or goal-directed behavior.

Cybernetics and Fund Management

“Goal-directed behavior” is particularly critical in the world of investment management. Read the rest of this entry »

The Intelligent Investor

In DEEP Investing on January 1, 2011 at 1:15 AM
Benjamin Graham

Benjamin Graham

Chinese Blue Marble Half Slice

“Smart investors look to the market not as a guide for what to do but as a creator of opportunity.”

–Benjamin Graham

Chinese Blue Marble Half Slice

Read the rest of this entry »

Trading Systems and Methods by Perry Kaufman

In BOOK Review, DEEP Investing on February 21, 2010 at 11:38 PM

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RECOMMENDED.

Not for wimps, the lazy, or the faint-of-heart.

Perhaps the most widely quoted work by industry professionals.

Awesome in every sense of the word.

High Probability Trading by Marcel Link

In BOOK Review, DEEP Investing on February 21, 2010 at 11:29 PM

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RECOMMENDED

Interesting insights from a pre-high frequency prop trading perspective.

This is a totally different angle from your typical retail trading experience.

Mechanical Trading Systems by Richard Weissman

In BOOK Review, DEEP Investing on February 21, 2010 at 11:18 PM

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RECOMMENDED.

“The greatest benefit of mechanical trading systems is their ability to reprogram traders away from destructive types of behavior in favor of successful trading habits.”

–Richard Weissman

Perhaps W. Edwards Deming said it best: “If you can’t describe what you are doing as a process, you don’t know what you’re doing.”

I can count on one hand the number of traders I’ve met on the Philippine Stock Exchange trading floor who can describe every facet of their trading as a process.  True, some veterans can kick butt trading ‘by their gut’ but they are few.  I suspect the majority let their emotional state or whims of the moment play a inappropriately large role in putting on trades.

If you’re serious about your trading, you’ll systematize what you’re doing.

Enhancing Trader Performance by Brett Steenbarger

In BOOK Review, DEEP Investing on February 21, 2010 at 11:09 PM

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RECOMMENDED

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The renown author of The Psychology of Trading and student of peak performance training explores professional trading as a performance discipline.

“‘Can anyone become a successful trader?’

What most people want to hear when they ask this question is ‘Of course. With persistence and motivation, you can succeed.’

That, however, is nonsense.”

–Brett Steenbarger Read the rest of this entry »

Market Wizards by Jack D. Schwager

In BOOK Review, DEEP Investing on February 21, 2010 at 11:05 PM

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RECOMMENDED

If I was forced to jettison my entire trading library and keep ONE BOOK, this would be it.

Take On the Street: What Wall Street and Corporate America Don’t Want You to Know. By Arthur Levitt

In BOOK Review, DEEP Investing on February 21, 2010 at 11:02 PM

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RECOMMENDED.

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You’ll never look at fundamental analysis the same way again.

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Passport to Profits: A Guide to Global Investing by Mark Mobius

In BOOK Review, DEEP Investing on February 21, 2010 at 10:56 PM

“Sir John Templeton was the first American investment manager to pursue investments in foreign markets.  He chose Mobius as his general to lead the Templeton Emerging Markets Fund, which invested heavily in dozens of emerging and frontier markets years before most other funds got a clue.

My fave quote:
“All markets, being based more in mass psychology than objective reality, have a tendency to overshoot and undershoot economic growth rates. Judging the influence of irrational emotion is, by the way, the way we make most of our money.”

Mobius, by the way, was the keynote speaker for the Asia Pacific Investment Conference 2009 at the Renaissance Hotel in Makati City, Philippines.

Practical Speculation by Victor Niederhoffer

In BOOK Review, DEEP Investing on February 21, 2010 at 10:53 PM

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Recommended.

Renown mentor and trainer of numerous world class traders including Monroe Trout, Toby Crabel, Stu Rose, James Altucher, John Hummer, Jake Burton Carpenter and Roy Niederhoffer.

Intriguing read, despite Niederhoffer’s obvious issues with risk management.

This book came out midway between two extremely high profile Niederhoffer fund blow-ups: the first in 1997 when he was arguable the top fund manager on Earth; the second in the 2007 subprime meltdown, a year after his Matador Fund was awarded by MarHedge as one of the best in the world. Read the rest of this entry »