Entries by Aldrin Gonzales

The Philosopher on Playing the Player

Market sentiment is a fuzzy concept. In its most basic sense, it’s the aggregate beliefs and moods of actors that comprise the total market. It’s tough to measure, gauge and test. And so, it’s often discarded completely or superfluously used to confirm one’s own biases.

Beware The Top Performers

“And, at any point in time, the richest traders are often the worst traders. This, I will call the cross-sectional problem: At a given time in the market, the most successful traders are likely to be those that are best fit to the last cycle. This does not happen too often with dentists or pianists—because […]

Lessons from a Trading Great: Bruce Kovner

Bruce Kovner retired in 2011 from Caxton Associates, the hedge fund he founded and ran for 28 years. Over that time the fund returned an average of 21 percent a year since its inception. In comparison, the SPX averaged just 11%. Kovner had only one losing year (in 94’). Before Caxton, while trading at the […]