Monthly Archives: April 2011

A Shift Toward Specialization: Higher Transaction Costs Due to Free Speech

Truthfully, I think being politically correct is wrong. Plain wrong. But not because I don’t want to call Asians, “Asians” instead of “Orientals” or whether to say “Blacks” vs “African Americans”, but because of transaction costs that are established by … Continue reading

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A Trader’s Advantage Using Hereditary Habits

Unlike the movie “Seven” that portrays the seven deadly sins: anger, greed, sloth, pride, lust, envy and gluttony, version of the movie would have probably been about 60 mins shorter…And in my version, they wouldn’t be called deadly sins as … Continue reading

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Religious Edicts Dictate Ethical Business Practices

Religion has been an important entity in developing the social, political and cultural guidelines throughout most of anthropological history. Before there were skyscrapers, banking systems and online trading platforms, there were men, women and children sacrificing articles of food & … Continue reading

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Karma of Stocks: Reversion to the Mean or Deterministic?

If you’ve ever invested in stocks, you’ve probably heard the term “reversion to the mean” thrown around like a pigskin on the beach. However, what you might not understand is the forethought that goes into drawing such a conclusion. ¬†For … Continue reading

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Practice vs Theory: Account for Model Error In Your Investments

If you recall the article about transaction costs, you will remember that we compared the intangible and tangible costs associated with analyzing any decision. However, these costs, however accurate they may be, are still theoretical. In theory, we can estimate … Continue reading

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