A fascinating piece in the NYT:
“Are there any
lessons to be had from the trading records of a man who died 70 years ago? Just
maybe. The first is the
simplest: In financial markets, being brilliant isn’t enough. The best traders
have to not only understand the fundamentals of the asset they are trading, but
also have almost a sixth sense for how the timing and momentum within markets
will evolve. You can lose a lot of money having the right idea at the wrong
time. The second is that
even skilled traders may need to be willing to incur major losses — which
explains why hedge funds that face redemption requests from investors can face
major problems even when their underlying investment thesis is right.”
Related:
John Maynard Keynes on Stock Markets and Liquidity:
http://www.pbs.org/newshour/making-sense/john-maynard-keynes-stock-market-past-week/
[Note: KEYNES was a pretty good stock market investor]