"A very significant part of my philosophy has to do with managing your psychology. Markets are about the psychology of others. When are they panicking? When are they greedy? But you have those same flaws or those same potential flaws, and managing your portfolio in a way that doesn't leave you where you're panicking or overexposed to greed. If you ... See more

Recently, he had read an investment bible by the Fidelity fund manager Peter Lynch that described how to identify potential 10x bets. “Stalking the Tenbagger,” Lynch called this process.[18] The way Lynch explained things, if you liked a stock but other professional investors did not own it, this was a good sign; when the others woke up, their enth

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Another common error in the psychology literature concerns what is called “mental accounting.” The Thorp, Kelly, and Shannon school of information theory requires that, for an investment strategy to be ergodic and eventually capture the return of the market, agents increase their risks as they are winning, but contract after losses, a technique cal

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