#80: It is important to take risks

I just wanted to let you know that I am going to make all the Python code powering this site available for free. I have promised to have the site architecture improved by the end of the month. I have now made my life harder as I try to add the Python code to this timeframe.

I truly believe a lot of code has become commoditized in this A.I. era and should be available to the man in the street for those who like doing a bit of DIY. The time has come to apply much more critical and disciplined thinking to add value. I will write more on this as I get closer to delivery.

I got some great feedback from my last 2 posts that involved some industry commentary. Let me know what you would like me to write more about. I will definitely write more about what goes on behind the scenes of a broker, as I think it is always interesting to see things from behind the scenes. You only have to look at the various Netflix series documenting things that are normally kept behind closed doors.

It turns out I have had a technology issue most of the day, and I have 30 minutes before the Sabbath to write this note, so it is unchecked and short.

S2N Spotlight

I have extended the visualisation table I created the other day with maybe an even better visualisation of annual returns in buckets of 10% annual returns.

S2N Observations

We are witnessing the largest outperformance of the US Stock Index and the Global Stock Index (excl. US) over the last 25 years.

Liquidity continues to drain from the Fed swamp.

The yield curve continues to steepen despite the rally in bond yields.

An ending thought. I was at a lecture on Tuesday night given by a psychologist. She was remarking on the terrible increase in mental health issues, especially among teenagers. The one thing she said that stood out is that children don’t take enough risks anymore. Parents are overly protective on this front, and children are just not taking enough risks playing outside with friends. Falling and hurting themselves and recovering and coping. Kids have become too fragile.

This is something Nassim Taleb speaks about at great length in his book Anti-Fragile. It seems counterintuitive, but it is really true. It is the same with trading or investing. You have to take risks to get a return. Of course, just like any psychologist will tell a child or parent, you need to take risks within reason. The same applies to trading. Have a great weekend.

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