A beautiful formula

PAUL SAMUELSON: There is a  tempting and fatal fascination in mathematics. Albert Einstein warned against it. He said elegance is for tailors, don’t believe in something because it’s a beautiful formula.

The blade of grass

“Observe that the blade of grass that resists the lawn
mower gets cut down, while the blade that bends remains uncut.�

Woody Allen says that the brain is his second favorite organ.
… our brains are not monolithic bastions of rationality. While we
have a powerful prefrontal cortex with special analytic power, it has only
limited ability to control the wild and powerful lizard brain.

…investing in crazy markets is somewhat akin to
preparing for a sports competition. To win, it is always good to be strong,
fast, and experienced. The best strategy on any given day, however, also
depends on the competition.

For investing, the only rule is to predict what everyone else is doing,
and move to profit from their behavior. Investors who do what comes
naturally—or who use a fixed rule based on fundamental data—tend to
become prey.

— …Risk can be defined as:”The opposite of creating a winning trade with the least possible position size using the least possible account equity in the least possible time.” —