Monday, November 4, 2013

Reducing Noise in Your Trading

Good article by Barry Ritholtz on Wapo related to how to minimize the unnecessary noise currently in your trading practices.

Attached is an excerpt:
“Signal-to-noise ratio” is an engineering concept that focuses on the amount of useful information being received compared with false or useless data. This is an especially important concept to investors.
Over the past few years, I have been reducing the meaningless distractions in my investing process. You should, too. You want less of the annoying nonsense that interferes with your portfolios and more of the significant data that allow you to become a less distracted, more purposeful investor.

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