Some random things about investment

Some random things I keep about investment. From a retail investor perspective. 1. Invest with a system. This is why an investor can success in this journey. It is damn hard to build one, but I know no person thinks about investment setiously and say it is an easy game. …

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Private Equity and Venture Capital

Conversations about private equity (PE), venture capital (VC), and hedge fund (HF) are always interesting.  One leading reason for this excitement, probably, is the tendency toward freedom and possibilities: where is the next big things? is this idea feasible? what are the strategies to conquer this industry/market?  PE, VC, and HF cumulatively operate …

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Prepare for some unthinkables

I first learn the term “unthinkable” from an interview made by WealthTrack with both Bill Gross and Mohamed El-Erian late last year.  It isn’t a new concept.  We have a wide range of names that cover a part or whole of the concept such as “Worst case”, or “Unexpected case”. …

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Price movement – some additional facets (3)

This post is the last following of Price movement – market proxies (1) and Price movement – diagnosis (2) on studying the price movement – the ruling factor of the market. Breaking down the price movements will be an extremely ambitious task, however it’s worth trying.  In the first note I’ve introduced …

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Price movement – diagnosis (2)

This post continues Price movement – market proxies (1) to study the price movement – the ruling factor of the market. Markets are established in mostly simple structures; because of that, they stand in between of everything.  The most basic function of the market is to facilitate transactions.  When everyone has a …

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Price movement – market proxies (1)

If there is one market factor that is “One Ring to rule them all”, it will be no doubt that the price movement is that only One Ring.  Effectively, price movements are the proxy of all proxies, the sum of entire market participants’ expectations and valuations, the combination of public …

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The two critical ratios and why gambling is on the different side

I would test these two ratios first on approaching any investment system: The winning ratio and the average size of wining over losing ratio.  Take it a broader way: in order to make capital appreciation (or even in life) one needs (1) win more than lose and/or (2) average size …

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Global risk appetite

I’ve just thought out a pretty cool idea – however not a new concept – to construct a qualitative, active update-able, and relatively personal perspective (i.e. very subjective) matrix between asset classes and risk perspectives.  There is some perspectives that is pretty interesting about the correlation between (1) events and …

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