Momentum Vs Mean Reversion
Life gets a little too busy at times to zoom out, but then you take a break and look at the inner city (zeus) from a distance and a moment tumbles out that could change everything. Here I’m leaving for Alibaug on a Ro-Ro and in a stray moment , because i’m reading Ernest Chan’s Quantitative Trading , I had an epiphany. Trader’s trades mimic his psyche , and mine is mean reversion. But had I been a momentum trader — go with what works, fast, get down when it stops working, I’d have benefited more in life. Numerous life decisions — girlfriends, jobs, business ideas, travelling — could have been better with momentum.