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I think the point of the article was that simple index fund beats most endowment funds. not just Harvard.

That's exactly my point. :)

Passive investing is trouncing all active managers from hedge funds, mutual funds, to pension funds, and now college endowment funds. So hard to beat the market when they are managing billions. But I think now that indexing has proven to be so successful, would this be the seed of its...

Successful investors will be defined by highly idiosyncratic and concentrated portfolios. "The next chart shows flows into passive ETFs (red) and active mutual funds (blue). Highlighted on the chart is the depth of the financial crisis, September 2008. This appears to be the inflection point...

This is a true story. My brother is a senior software engineer working in Silicon Valley. He said his boss hired this expert database guru to optimize the company's enterprise database to run faster. Engineers have tried everything but no further performance were made. The guy came in a for a...

Makes total sense. Moving non-core functions(finance, legal, and sales and marketing teams) to lower cost areas and keeping core functions (PM, research, trading) in NY. Also, these non-core function employees will enjoy a better quality of life at a lower cost of living in TN too...

Exactly. And it's not all sim. 1 hours of real trading and 5 hours of research or practice.

Brett Steenbarge idea of deliberate practice for trading goes like exactly what you saying. So let's say you are normally a trend trader but you want to increase your toolbox. So you practice on sim for days that are flat or rangebound. Vice versa if you are rangebound/mean reversion trader and...

That's the entire idea of deliberate practice. Let's say you have a basic strategy in terms of entry and exit rules. But in real-time, it's might be difficult to identify and execute that under pressure. So one can practice in sims so that when that in real life you will execute with ease. This...

In The Little Book of Talent, one of the core ideas of to get better is to do a lot of practice(deliberate practice). Tip #45 For Every hour of competition, spend five hours practice. To apply the same ideas to trading, for every hour of live trading one should practice 5 hours on the sim...

Since the 1987, the Fed has been "managing" the market more. We no longer have a free market since 2008 crash. This smoothed volatility is a controlled illusion and unnatural. I wonder how long can Central Banks around the world keep this up. So the volatility you see prior to the 80s and...

That must stinged! But to be fair, every single day there are many long and short signals all day long (if you are a short-term scalper or intraday trend trader). Albeit not all the signals are 100 ES points. LOL. I just need to learn the habit of continuous execution with no fear. I only take...

I saw those signals too but it was after the fact because I was occupied with other non-trading things. Kind of crazy to see it works that way. I need to rework my schedule so I can trade these signals. hehe

Progress. Another good process day. It's not about huge P&L at this stage. It's about identifying the right setup in real-time and entering long or short when I should be. To create consistency. Once consistency is achieved with the right trading habits, then scaling up can be done. I'm glad I...

I also trade in my 401K account. hehe. I rolled over my old employer 401K into IB. I've been trading that pretty decently. My other taxable account has so so results...

I have both mindsets. I have both a long term account for investing and a short-term account for trading. But I lean toward more trading but I appreciate long term investing via 401K etc.

If you're a "half-decent" trader, you can STOMP Buffett's "buy and hold". Actually, that's NOT a true statement. Buffett had a bet with a hedge fund 10 years ago that buying and holding the index will beat an index of hedge fund managers(supposedly "half-decent" traders or active managers). And...

Today I went long when the trend is up. Made some. A good indicator that the trade is good is when you enter it goes your way right away quickly. Tuesday, I was trying to time bottom because I thought I already missed the short window since I was midstream even though my signals and intuition...

Amazing power of long-term investing in U.S. index. But the example Buffett gave was probably the best run of any equity markets in the world. This figure is over 76 years. You think the next 76 years will have the same amazing run in equity markets? If so then just buy index regularly and...

Knowing what to do intellectually and actually doing it in real time are 2 different things. That means I need a hella lot more practice to cement that X->Y association and make those thinking automatic. If I only listen to the quiet voice in the back of my mind.. To convert intuition into...