Previous: How to Trade EMFX Part 1
In Part 1 we covered carry strategies and how they’ve been slowly dying. Now let’s get into the stuff that actually works better: growth, valuation, momentum, flows, seasonality, and volatility. This is where the chapter gets really interesting.
Book: Beating the Street by Peter Lynch with John Rothchild | ISBN: 978-0-671-75915-5
Peter Lynch’s day started at 6:05 AM in the backseat of a friend’s Saab. His buddy Jeff Moore drove while his wife Bobbie held X-rays up to a small light in the front seat. Lynch sat in the back with his own light, reading annual reports. The X-rays never got mixed up with the financial reports.
Order-driven markets are where most of the action happens. Almost every major exchange in the world is order-driven. If you understand how these markets match buyers to sellers and price the resulting trades, you understand the mechanics of modern trading. Chapter 6 of “Trading and Exchanges” breaks it all down.
Now that we’ve covered the rules and philosophy behind the Swiss Detox Diet, let’s get into what you’re actually eating each week. Dr. Rau structures the three weeks very intentionally, starting extremely restrictive and then gradually opening things up.
The preface of “The Hedge Fund Book” starts with Richard Wilson explaining why he wrote this thing in the first place. And honestly, his reason is pretty relatable. He read most hedge fund books out there over seven years and couldn’t find one that gave you straight, unfiltered advice from actual hedge fund managers.
In Chapter 6, we get into the “code” of the market. Order-driven markets don’t rely on a dealer to set prices; they rely on a set of rules. If you’re a developer building an exchange, these are your requirements.
This is post 8 of 23 in a series on Systems Thinking: Managing Chaos and Complexity by Jamshid Gharajedaghi (ISBN: 978-0-7506-7973-2).
Book: Systematic Fixed Income: An Investor’s Guide Author: Scott A. Richardson, Ph.D. ISBN: 9781119900139 Publisher: John Wiley & Sons, 2022
Book: Atlas Shrugged by Ayn Rand (35th Anniversary Edition, ISBN: 9781101137192)
This is the longest chapter so far, and it’s where Rand switches from setup to action. Dagny is building the Rio Norte Line with Rearden Metal rails. The government is trying to stop her. And the question at the center of everything is: who’s actually exploiting whom?
So you have a bunch of big investors who want to put money into private equity but don’t want to pick companies themselves. What do they do? They hand their money to a fund manager and say “go make us rich.” Sounds simple. But the details of how that relationship works, how the fund manager gets paid, and what stops them from just enriching themselves at your expense? That is where it gets interesting.