Inside the Mind of the Turtles by Curtis Faith
Trading like a turtle has gotten a bunch of hype recently; this book exploits that by compiling a bunch of business anecdotes that harp on the first quote below...
Basic empiric setup when confronted with Knightian uncertainty. Faith assumes (ha) you build models and have the statistical wherewithal to determine model failure. Lacking this, it seems more an outcome-oriented approach (trading on pricing), as opposed to building causation-based models.
- Overcome fear.
- Remain flexible.
- Take reasoned risks.
- Prepare to be wrong.
- Actively seek reality.
- Respond quickly to change.
- Focus on decisions, not outcomes.
We can decompose the fear and anxiety from uncertainty into three separate sources:
- Novelty anxiety
- Irrational anxiety
- Inherent-threat anxiety
Always have a plan BOr insure plan A ;)