shadowninja
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Anyone read this book?
http://en.wikipedia.org/wiki/Fooled_by_Randomness
http://en.wikipedia.org/wiki/Fooled_by_Randomness
Fooled By Randomness
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cassiopeia
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Yes, this is one of my favourite books. I have read it several times, usually for entertainment purposes when feeling a little p*ssed of with too much cooperate bull****.
He is a great critic of management rhetoric and has proposed something called a reverse Turing test, where if a random set of phrases can appear to look like management 'wisdom' it is actually the sign of a lack of intelligence!
Nassim's theory is that many people get were they are through luck not ability and this is particularly true with business and trading, so apparent high flyers often return to the norm. His trading philosophy is that traders often underestimate the probability of large deviations from the norm (possibly down to incomplete data in my opinion) and he makes money by purchasing far out of the money options waiting for these events.
Fooled by Randomness is an excellent choice as an background introduction for the analytical trader, although it provides few details in the specifics.
He is a great critic of management rhetoric and has proposed something called a reverse Turing test, where if a random set of phrases can appear to look like management 'wisdom' it is actually the sign of a lack of intelligence!
Nassim's theory is that many people get were they are through luck not ability and this is particularly true with business and trading, so apparent high flyers often return to the norm. His trading philosophy is that traders often underestimate the probability of large deviations from the norm (possibly down to incomplete data in my opinion) and he makes money by purchasing far out of the money options waiting for these events.
Fooled by Randomness is an excellent choice as an background introduction for the analytical trader, although it provides few details in the specifics.
shadowninja
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Ah, I see. Thanks for your comments. 
Fooled by Randomness is good one....Taleb talks about Hidden role of chance and life in markets.......But the one that is equally good is Against the Gods (Remarkable Story of Risk) ISBN - 0-471-29563-9 - by Peter Bernstein........It is all about Risk and control and measurement of it....It is about story of risk from past and modern times.....and he starts from year 1200 and narrates the stages of risk throgh the times....
The issues discussed are - Why is the msatery of Risk such a modern concept?....Why did humanity waited thousands of years before breaking doen the barriers that stood in way of measuring and controlling Risk....
Very good read indeed....
The issues discussed are - Why is the msatery of Risk such a modern concept?....Why did humanity waited thousands of years before breaking doen the barriers that stood in way of measuring and controlling Risk....
Very good read indeed....
DONEGAL 2007
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Humour in Fooled by Randomness
Another example of the humour of this book is from page 136 of the Penguin edition , when discussing the Monkeys on Typewriters phenomenon he says " One monkey would even be expected to provide us with former vice president Al Gore's Earth in the Balance, perhaps stripped of the platitudes." The last phrase brings a big smile to my face!
Another example of the humour of this book is from page 136 of the Penguin edition , when discussing the Monkeys on Typewriters phenomenon he says " One monkey would even be expected to provide us with former vice president Al Gore's Earth in the Balance, perhaps stripped of the platitudes." The last phrase brings a big smile to my face!
rols
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I enjoyed the book immensely and was very pleased to recently stumble across this site.
http://www.dailyspeculations.com/
http://www.dailyspeculations.com/
Adamus
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Don't understand. Wasn't Niederhoffer the one that Taleb put out of business by buying all those naked options off him? How else is the website connected with Taleb?
