It's been about a week since I've finished A Man for All Markets by Edward O. Thorp. What a monumental book starting from his early childhood to him later in life trading billions of dollars a year. I come away with more than techniques, but for them to actualise in reality I need more experiences in the market. For which the past week has been practice grounds. I'm paying tuition fee for that too! Everyone does!
What's your favourite quote?
I have made 191 Kindle highlights. Here’s one of them:
“My thoughts then were much like I expected his to have been: that acknowledgment, applause, and honor are welcome and add zest to life but they are not ends to be pursued. I felt then, as I do now, that what matters is what you do and how you do it, the quality of the time you spend, and the people you share it with.”
What have you changed your mind on?
I've read books on Behavioural Economics before but the examples there being some university students in experiments didn't touch me so much. This book is full of stories of people taking real risks in games where there's objective calculations to be done but in the real world setting where subjective feelings are more powerful than formulas.
Since reading this book I feel my grasp on "anchor pricing" and other mental formations regarding trading and investments have soften. Whether I can ride through until the end of this round remains to be seen though. But really, my outlook on markets are brighter now.
What did you like least about this book?
I know that it's a book for author's stories and autobiography first. But I feel longing for more rigorous content of trading, how he made formulas to determine prices, what strategy to ride through weak hands, etc. The day-to-day stresses of his work are of interests to me. Maybe it'd subtract from this book. Anyways, I also have Kelly Capital Growth Investment Criterion and that book should go much more in-depth in calculations and the finer details on trading.
Did you agree with the author's conclusions? Where did you deviate?
I agree with his major choices. I see there's wisdom from someone who has been through several markets and several games. Who made marriage of mathematics and markets. I still have to put in thoughts to test though. In my market, the crypto space.
It's been a week and I've made some trading myself. Turns out that in-the-game is much different from thinking of trading. One has to deal with all the uncertain future and live with the certainty of our limited and uncertain portfolio. I'm also constructing a model of projection that I have to use to guide my moves during this season and to keep on refining it.