VOLATILITY

Volatility or Vol as Market participants call it affectionately is the soul of Financial Markets. Recently I came across lot of resources on Volatility as my research also involves survey on Volatility.

1. Nobel Laureate Robert F Engle  on VOLATILITY. His FT Lectures here.
2. R F Engle's take on Financial Market Volatility on Youtube.
3. Interview with Engle by FX Diebold.
4. In fact I am greatly influenced by Dr K Kiran Kumar of NISM for introducing me and being a teacher of  Financial Econometrics at NISM in his EERF Summer Schools. Engle has actually participated in a conference at NISM two years back.
5. One book that is extremely lucid in explaining financial econometrics is  Chris Brooks.

NEWTON LINCHEN ON INDEPENDENT TRADER

Dear Professor,

Namastê!

It has been occurring some improvements to this issue: I only day trade now patterns I had worked with comprehensive statistics.

This means a lot in terms of reducing overtrading and the emotional factor of trading.

Notice that when you analyse trade by trade, you're "right" or "wrong", depending whether the trade works out or not. That kills traders, for we misinterpret random events with a "failure" of our judgment skills... When you only trade with statistical setups, you don't feel bad anymore about losing trades (you're acquainted now with the histogram of the distribution of the series of trades - losses and gains), and you also don't feel exhilarated when the trade is a win, because, remember, it was not the fruit of your recent workout in analysis or judgment. It was the result of the distribution of the series of trades, according to the statistical pattern.

In other terms, when the statistical trades works well, it's just normal. When it produces a loss, it's not your fault.

: )