I have just joined the forum, so I want to make a qucik review of the book Bird Watching in Lion Country.
In my opinion it is a great book, as many has pointed out. The book has the following central messages:
- Trading is an accumilation of small edges like money management, understanding the markets, good technical methods, etc.
- Only a holistic approach of analysis, which includes fundamental, technical and psychological factors, can give you an accurate picture
- In the very short term (e.g. intraday) there are simply too many noises, one should look at the bigger picture to get a clear perspective
- In the face of unpredictable price movements, your mathematical edge is very small. However, if you maximizes your small edge with things like appropriate leverage and fundamental understanding, the ultimate odds will be big enough to make a lot of money, just as the casinos beat the people.
- Don't act if you are unsure. If you don't know what's the lengthy thing sticking out of the bush, don't pick it up in case if it's a lion tail!
I don't agree with everything he said in the book, like the median grid method. But still, I recommend it to all people who want to learn trading.
By the way, I've started a group for BWILC on facebook, please join:
-- Edited by Victor Chan on Saturday 22nd of August 2009 08:33:35 AM
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Trading is common. Understanding is rare. Therefore it is upon the understanding rather than upon the trading that you should dwell. --- Victor Chan (paraphrasing Sherlock Holmes)
