Posts Tagged ‘Sauce-Bearnaise Syndrome’

Puke: Don’t Invest In The Familar

Sauce-Bearnaise Syndrome. So there's a name for my aversion to seafood and anything on the same plate.  And organ meats, and fake cheese. And cool whip. – Ilene

Puke: Don't Invest In The Familar

Courtesy of Tim at The Psy-Fi Blog

Sauce-Bearnaise Syndrome

If you’re unfortunate enough to eat something that violently disagrees with you, so much so that you end up vomiting, you’ll likely find yourself suffering from Sauce-Bearnaise Syndrome. Otherwise known as taste aversion, it causes us to associate the taste of the food we’ve puked up with the illness that caused it to such an extent we’re unable to face eating it again.

As I can personally attest, this effect is incredibly strong even when the food in question has nothing to do with the illness. Even knowing this doesn’t help because the primacy we place on personal experience over all others is so strong. However, while this may be of great survival value when grazing forest floors it’s less helpful in investing, where personal experience is often the worst possible guide to the best strategy.

Adaptive, Involuntary and Subjective Investors

The adaptive value of Sauce-Bearnaise Syndrome is pretty obvious. If you’re a hungry semi-evolved simian wandering around a primeval forest and you happen upon a tasty looking mushroom then eating it may make you extremely sick. Assuming you survive the experience it’s a darn good evolutionary trick to find a way of stopping the stupid ape from making the same mistake again – so automatically triggering an aversion to the taste is nature’s way of keeping us alive. Of course, if we ate the other sort of mushroom we'd probably spend a day dreaming of kaleidoscopic antelopes and evolve to become an investment analyst.

However, when I became sick after eating my favourite Indian curry it was nothing to do with the food, but a bug I’d picked up on a skiing trip with a host of plague ridden kids. It took a year and a lot of red wine to overcome the aversion, despite knowing exactly what the problem was. The S-B effect is involuntary and powerful and entirely subjective.

Pavlov's Investors

The persistence of effects…
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Zero Hedge

No, Robots Cannot Replace Us

Courtesy of ZeroHedge. View original post here.

Authored by Per Bylund via The Mises Institute,

Automation seems to be a never-ending source of fear-mongering. Judging from the commentary, robots will “replace us” and cause large-scale unemployment. With the entry of artificial intelligence (AI), and robots that make robots, the value of human beings as productive forces in the economy is simply zero. People then become value-less consumers, only “mouths to feed” while production is carried out by machines.

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Phil's Favorites

Breakout

 

Breakout

Courtesy of 

There’s a new kid on the block. Innovator’s IBD® Breakout Opportunities ETF, ticker BOUT.

The goal of this fund is to identify stocks before they break out. Basically, they’re delivering on a style of technical analysis via machine, which I find intriguing.

When I was trading stocks, I would often buy on the breakout and then sell on the retest. Over and over I would let my emotions get the best of me. Needless to say, it was not a profitable strategy.

Theoretically, an algorithm will eliminate some of these biases that all traders have to overcome. Below is ...



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Kimble Charting Solutions

Connect Series Webinar September 2018

Courtesy of Chris Kimble.

We cover dominating patterns in major global Indices, sectors, commodities and the metals markets.  We produce chart pattern analysis and empower people to improve entry and exit points.

To become a member of Kimble Charting Solutions, click here.

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ValueWalk

Global Return August 2018 Commentary: Thinking Differently

By Jacob Wolinsky. Originally published at ValueWalk.

Global Return Asset Management commentary for the month ended August 31, 2018; discussing Yahoo’s business model.

Dear Friends,

For the month of August, we generated a net return of 2.09%.1 We ended the month with 18% of assets in cash and had a net market exposure of 29%.

Q2 hedge fund letters, conference, scoops etc

Below is a new section we’re calling...

Think Differently

The purpose of this section is to...



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Insider Scoop

Discovery Communications' 20% Gain Difficult To Justify, Pivotal Says In Downgrade

Courtesy of Benzinga.

Related DISCA Benzinga's Top Upgrades, Downgrades For September 18, 2018 A Peek Into The Markets: US Stock Futur...

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Members' Corner

Nike, Colin Kaepernick and the pitfalls of 'woke' corporate branding

 

Adding this article to Members Corner, in case anyone wants to share their opinions on Nike and Kaep, or on divisiveness in general. Also see the article I mentioned in the comments section, "A Warning From Europe: The Worst Is Yet to Come" and What’s behind the current wave of ‘corporate activism’? ~ Ilene

Nike, Colin Kaepernick and the pitfalls of 'woke' corporate branding

Courtesy of Simon Chadwick, University of Salford...



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Biotech

Gene-editing technique CRISPR identifies dangerous breast cancer mutations

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

 

Gene-editing technique CRISPR identifies dangerous breast cancer mutations

Breast cancer type 1 (BRCA1) is a human tumor suppressor gene, found in all humans. Its protein, also called by the synonym BRCA1, is responsible for repairing DNA. ibreakstock/Shutterstock.com

By Jay Shendure, University of Washington; Greg Findlay, ...



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Chart School

Gold stocks, Elliot Wave and Volume

Courtesy of Read the Ticker.

Whom ever paints the chart with Elliot wave always has to try and sideline their bias. Elliot wave can work when it applied correctly and the chart is friendly to receive its application.

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Fundamentals are important, and so is market timing, here at readtheticker.com we believe a combination of ...

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Digital Currencies

A history of Bitcoin - told through the five different groups who bought it

 

A history of Bitcoin – told through the five different groups who bought it

GeniusKp/Shutterstock.com

Courtesy of Dave Elder-Vass, Loughborough University

The recent fluctuations in Bitcoin’s value are just the latest in a series of spectacular peaks and troughs since it was created in 2009. (Though its price has been falling recently, it remains five times higher than last April, before the l...



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Mapping The Market

Mistakes were Made. (And, Yes, by Me.)

Via Jean-Luc:

Famed investor reflecting on his mistakes:

Mistakes were Made. (And, Yes, by Me.)

One that stands out for me:

Instead of focusing on how value factors in general did in identifying attractive stocks, I rushed to proclaim price-to-sales the winner. That was, until it wasn’t. I guess there’s a reason for the proclamation “The king is dead, long live the king” when a monarchy changes hands. As we continued to update the book, price-to-sales was no longer the “best” single value factor, replaced by others, depending upon the time frames examined. I had also become a lot more sophisticated in my analysis—thanks to criticism of my earlier work—and realized that everything, including factors, moves in and out of favor, depending upon the market environment. I also realized...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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All About Trends

Mid-Day Update

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Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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