A description of Seth Godin’s ‘Linchpin’ (a must read):

“There used to be two teams in every workplace: management and labor. Now there’s a third team, the linchpins. These people invent, lead (regardless of title), connect others, make things happen, and create order out of chaos. They figure out what to do when there’s no rule book. They delight and challenge their customers and peers. They love their work, pour their best selves into it, and turn each day into a kind of art.”

Can’t trade off it…even if he ends up being right.

Reminds of the two bubble theory again…

Shout to Ritholtz.com.

Had a chance to spend some time with Francisco Vaca a few years back. He later offered complimentary words about my book ‘The Complete TurtleTrader’. Today, there is a nice article out naming him as one of the top traders of 2010.

“To make money in the stock market, kill your losses.”

Must reading (PDF) from Thomas M. Hoenig (President Federal Reserve Bank of Kansas City).

Tip @pragcap.com.

Consider William Worthington Fowler’s description of Wall Street, circa 1870 (shout to @Ritholtz):

“To the merchant and banker it is a financial centre, collecting and distributing money, regulating the exchanges of a continent and striking balances of trade with London and Frankfort. To the outside observer and novice it is a kind of work-shop thronged by cunning artisans who work in precious metals, where vessels of gold and silver are wrought or made to shine with fresh luster, and where old china is fire-gilt as good as new. The moralist and philosopher look upon it as a gambling-den, a cage of unclean birds, an abomination where men drive a horrible trade, fattening and battening on the substance of their friends and neighbors—or perhaps a kind of modern coliseum where gladiatorial combats are joined, and bulls, bears and other ferocious beasts gore and tear each other for public amusement. The brokers regard it as a place of business where, in mercantile parlance, they may ply a legitimate trade, buying and selling for others on commission. To the speculators it is a caravansera where they may load or unload their camels and drive them away betimes to some pleasant oasis. To the financial commanders it is an arsenal in which their arms and chariots are stored, the stronghold to be defended or besieged, the field for strategy, battles and plunder.”

Nice.

Feedback in:

I am currently reading “Market Wizards” and came across an interesting quote by Michael Marcus, who said, “I do believe that trend following systems are doomed to mediocrity. I believe that the era of trend following is over until and unless there is a particular imbalance in a market that overrides everything else.”

That book was written over 20 years ago. What has happened since?

Was speaking with Larry Hite today and he asked whether it was better to be smart or intelligent. He would rather be smart for that means an ability to adapt, whereas intelligence implies IQ test (read: memorization skill).

Timeless wisdom! Consider winning trend following charts over 2010-11:

Sugar

Corn

Cotton