Luck

“Luck is what happens when preparation meets opportunity.”
- Seneca (Roman philosopher, mid-1st century AD)

The Truth

Had a revelation after reading some books and a chat with friend, which I will try to put to words as best as I can.

What is the "Truth", or the "Reality" (about anything)?

The short answer is, there is no such thing as the Truth or the Reality.

Everything thing we see is filtered and colored through our perception, i.e., our five basic senses, our previous experiences, our mental wiring etc etc. No one see the same thing in the exact same way.

Take a simple chair for example, even though it is just a simple chair, we consciously or subconsciously form opinions about it - a comfortable chair, an ugly chair, a red chair, even a "simple" chair. So what is the universal Truth/Reality about this chair? Nope, there is none. No one see the chair the same way.

Having agree that there is no universal Truth / Reality, here is the next question:

How do Conflicts arise?

Conflicts arise when two different person's truths / realities are different from each other, and they both insist so strongly on them that they try to make the other person see their version of the truth / reality.

However, in my opinion, the conflicts are absurd and unnecessary, since there is no universal Truth / Reality. Everything is just a matter of perceptions. If everyone can see the Truth and Reality for what it is, which is simply a series of different perceptions, then everyone will be able to understand everyone else perfectly! Won't that be a wonderful world to live in?

However, given that we do not live in a perfect world, how can we make use of this insight After all these ramblings, how should we see the world?

So what exactly is the Universal Truth?

My Truth is simple. Truth is...

Whatever that works.

What do I mean by "whatever that works"? "Works" can mean myriad of things - Confirming observation, make money, bring happiness etc.

Let me give an example. For thousands of years, people's truth/reality was that the Sun revolves around the Earth. It had worked for them for thousands of years  (confirmed their observation, boosted their ego, made them happy etc), so there is nothing wrong with it.

Until one day, Copernicus found that that particular truth/reality doesn't work so well anymore (doesn't fit new observations), and thus, he changed it. Today, we believe that the truth is that the Earth revolves around the Sun. So it is the current truth until somebody else changes it. Simple as that.

The same applies to everything else. Evolution Theory, Technical Analysis, God, what I / other people should or should not / can or cannot do etc etc.

All that matters is whether it works.

Hence, to summarize, there are 4 levels to Truth & Reality -

Level 0: Truth is the truth (as you perceive it to be or think it is).
Level 1: Truth is there is no Truth.
Level 2: Truth is whatever that works.

Keep an open mind and open your eyes. Look beyond what you think is the truth & reality, you will see the infinite possibilities and reveal the Truth & Reality for what it truly is.

P.S. Actually there is a Level 3 that is more advanced:

Level 3: Truth is what we choose to create. After knowing Level 1, we consciously create, change, manipulate the Truth as we see fit.

(But attempts to do these will have unintended consequences. So, for all practical purposes, we will just stick to level 1 and 2.)

P.P.S. Perhaps, this post is an attempt of Level 3 truth.

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Buddha was seated among his disciples one morning when a man approached the gathering. “Does God exist,” he asked. “Yes, God exists,” Buddha answered. After lunch, another man appeared. “Does God exist?” he asked. “No, God does not exist,” Buddha answered. Late in the day, a third man asked Buddha the same question, and Buddha's response was: “You must decide for yourself.” “Master, this is absurd,” said one of the disciples. “How can you give three different answers to the same question?” “Because they were different persons,” answered the Enlightened One. “And each person approaches God in his own way: some with certainty, some with denial and some with doubt.”

Horoscope

AQUARIUS

The forbidden colors are reddish green and yellowish blue, invisible because the cells of your retina are not built to register them. But scientists have found a way for a few lucky people to glimpse the hues. Aquarius, I suspect you are close to experiencing a metaphorical version of this breakthrough- see something that is supposedly impossible to see.

 

- freewillastrology.com

Last Lecture

http://www.youtube.com/watch?v=ji5_MqicxSo

 

We cannot change the cards we are dealt, just how we play the hand.

Have something to bring to the table, because that will make you more welcome.

I probably got more from that dream and not accomplishing it than I got from any of the ones that I did accomplish.

You’ve got to get the fundamentals down because otherwise the fancy stuff isn’t going to work.

When you see yourself doing something badly and nobody’s bothering to tell you anymore, that’s a very bad place to be. Your critics are your ones telling you they still love you and care.

Experience is what you get when you didn’t get what you wanted.

Head fake learning is absolutely important, and you should keep your eye out for them because they’re everywhere.

The brick walls are not there to keep us out. The brick walls are there to give us a chance to show how badly we want something. Because the brick walls are there to stop the people who don’t want it badly enough.

It’s pretty easy to be smart when you’re parroting smart people.

It’s very important to know when you’re in a pissing match. And it’s very important to get out of it as quickly as possible.

Until you got ice cream spilled on you, you’re not doing field work.

I can’t tell you beforehand, but right before they present it I can tell you if the world (his students project work) is good by the body language. If they’re standing close to each other, the world is good.

If you’re going to do anything that pioneering you will get those arrows in the back, and you just have to put up with it. I mean everything that could go wrong did go wrong.

Somewhere along the way there’s got to be some aspect of what lets you get to achieve your dreams. First one is the role of parents, mentors, and students.

And he (Andy Van Dam) said, Randy, it’s such a shame that people perceive you as so arrogant. Because it’s going to limit what you’re going to be able to accomplish in life.

You just have to decide if you’re a Tigger or an Eeyore.

I have a theory that people who come from large families are better people because they’ve just had to learn to get along.

Loyalty is a two way street.

Syl said, it took me a long time but I’ve finally figured it out. When it comes to men that are romantically interested in you, it’s really simple. Just ignore everything they say and only pay attention to what they do. It’s that simple. It’s that easy.

You can’t get there alone. People have to help you and I do believe in karma. I believe in paybacks. You get people to help you by telling the truth. Being earnest.

I’ll take an earnest person over a hip person every day, because hip is short term. Earnest is long term.

Apologise when you screw up and focus on other people, not on yourself.

Don’t bail. The best of the gold’s at the bottom of barrels of crap.

Get a feedback loop and listen to it. Your feedback loop can be this dorky spreadsheet thing I did, or it can just be one great man who tells you what you need to hear. The hard part is the listening to it.

Don’t complain. Just work harder. That’s a picture of Jackie Robinson. It was in his contract not to complain, even when the fans spit on him.

Be good at something, it makes you valuable.

Find the best in everybody. Just keep waiting no matter how long it takes. No one is all evil. Everybody has a good side, just keep waiting, it will come out.

Be prepared. Luck is truly where preparation meets opportunity.

It’s not about how to achieve your dreams. It’s about how to lead your life. If you lead your life the right way, the karma will take care of itself. The dreams will come to you.

A Pen is a Wand

Watching Harry Potter on TV. Noticing a pen on my table. Suddenly, have random thought that actually,

A Pen is a Wand.

And a very powerful wand at that. It has the power and magic to create an entire world, fueled only by the imagination (mana) of the writer.

Powerful.

Books I Have Read Since I Joined A Proprietary Trading Film on 20 Feb 2012

Wanted to chronicle the list of books I read so that I won't forget them.
(Updated on 12 Aug 2012)

1. Compleat Day Trader by Jake Bernstein *
2. Compleat Day Trader II by Jake Bernstein *
3. Trading For A Living by Alexander Elder *
4. The Trader's Guide to Key Economic Indicators by Richard Yamarone *
5. The Secrets of Economic Indicators by Bernard Baumohl *
6. Mind Over Markets by James F. Dalton, Eric T. Jones, Robert B. Dalton *****
7. How to Get Started in Electronic Day Trading by David Nassar ***
8. Wisdom of Crowds by James Surowiecki ****
9. Markets, Mobs, and Mayhem by Robert Menschel ***
10. Studies in Tape Reading by Richard Wyckoff ***
11. The Day Trader Survivor Guide by Christopher Farrel ***
12. Japanese Candlestick Charting Technique by Steve Nelson *
13. Secrets of Trading Pros by Jack Bouroudjian **
14. The Market Never Sleep by Thomas L. Busby **
15. Techniques of Tape Reading by Vadym Graifer & Christopher Schumacher ***
16. Rules of the Trade by David Nassar **
17. How to Trade in Stocks by Jesse Livermore **
18. Markets in Profile by James F. Dalton, Eric T. Jones, Robert B. Dalton **
19. The Trading Edge by Ricky Cheng *
20. The Art of the Trade by Jason Alsan Jankovsky ****
21. Time Compression Trading by Jason Alsan Jankovsky ****
22. Black Swan by Nassim Taleb ****
23. Fooled by Randomness by Nassim Taleb *****
24. Enhancing Trader Performance by Brett Steenbarger ****
25. Psychology of Trading by Brett Steenbarger ****
26. Intermarket Trading Strategies by Markos Katsanos **
27. Trading in the Zone by Mark Douglas ***
28. Reminiscences of a Stock Operator by Edwin Lefevre *****
29. The New Paradigm for Financial Markets by George Soros ***
30. Trader Vic - Methods of a Wall Street Master by Victor Sperandeo ****
31. Trader Vic II - Principles of Professional Speculator by Victor Sperandeo ***
32. Predatory Trading & Crowded Exits by James Clunie **
33. Trade with Passion and Purpose by Mark Whistler **
34. Performance Trading by Steve Ward *
35. World Event Trading by Andrew Busch ***
36. All About High-Frequency Trading by Michael Durbin**
37. The Education of a Speculator by Victor Niederhoffer *****
38. How I Trade for a Living by Gary Smith **
39. Trading Secrets by Simon Thompson **
40. The Speed Traders by Edgar Perez ***
41. Hedge Funds Myths and Limits by Francois-Serge Lhabitant ***
42. Inside the Black Box by Rishi K Narang
43. The Magic by Rhonda Byrne
44. Market Wizards by Jack Schwager ****
45. New Market Wizards by Jack Schwager ****
46. Super Strategies for Puzzles and Games by Saul Levmoew and Elizabeth Early Cook
47. Understand Arbitrage by Randall S. Billingsley (Read half) ***
48. Pair Trading Quantitative Methods and Analysis (Read half) ****

Currently Reading:

1. Understand Arbitrage by Randall S. Billingsley
2. Practical Speculation by Victor Nederhoffer and Laurel Kenner
3. Basic Black Scholes by Timothy Crack
4. Econometrics of Financial High-Frequency Data by Nikolaus Hautsch

Stars rating represents only my personal liking. All are nice books (but some are nicer than the others). :)

Poker Rules

From http://www.dailyspeculations.com/wordpress/?p=7334

World class poker rounder and poker player, Thomas Austin Preston Jr. aka "Amarillo Slim" died of colon cancer yesterday at the age of 83. Known as a real solid poker player, he was also a great prop hustler, one of the best on the planet.

Slim listed 10 rules for poker success that have relevance in trading.

1. Play the players more than you play the cards.
2. Choose the right opponents. If you don't see a sucker at the table, you're it.
3. Never play with money you can't afford to lose.
4. Be tight and aggressive; don't play many hands, but when you do, be prepared to move in.
5. Always be observing at a poker game. The minute you're there, you're working.
6. Watch the other players for "tells" before you look at your own cards.
7. Diversify your play so others can't pick up your tells.
8. Choose your speed based on the direction of the game. Play slow in a fast game, fast in a slow game.
9. Be able to quit a loser, and for goodness' sake, keep playing when you're winning.
10. Conduct yourself honorably so you're always invited back .

Dalai Lama

The Dalai Lama was asked what surprised him the most.

"Man - because he sacrifices his health in order to make money. Then he sacrifices money to recuperate his health. And then he is so anxious about the future that he does not enjoy the present, the result being that he does not live in the present, or the future, he lives as if he is never going to die and then he dies having never really lived."