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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: ChanceIs who wrote (83755)	4/29/2007 11:38:31 PM
From: energyplay	Respond to of 206330

I bought The Black Swan Thursday, and I am about 1/3 through. Very coherent - it all hangs together. He makes useful distinctions, with falling into academic jargon. I expect anyone on this board who knows about bell curves (Gaussian distributions) options can understand it, and the use of this goes far beyond financial derivatives. I like the book a lot.

To: ChanceIs who wrote (83755)	4/30/2007 4:29:13 PM
From: profile_14	Read Replies (1) \| Respond to of 206330

I read the first book a couple of years ago cover to cover and it basically refutes technical trading in that it suggests that those that go along will be alright most of the time until they get hit by the black swan, when they get wiped out because no stops will save them. In essence, my interpretation of the book suggests that the only way to protect and grow your investment is to keep the majority of it in a market neutral investment (quasi cash or bonds earning a modest coupon) while taking HIGHER risk with a very small portion of the portfolio. Hence only that small portion is at risk but can continue to provide healthy returns overall.