Readers reviews of
AND LIZARD BRAINS
You can add your review of this book by
contacting us . We will then place your
review on this page. (You can request to have your name deleted if you wish)
This book has potential, but it fails to meet it. I found it
littered with unquestioned assumptions, (trading stocks is a zero sum game )
misleading analogies, (prices are like coin tosses) and other comments that
undermine market credibility. He cites one example of a friend who bought stock
at $1.00, watched it go to $8.00 and then come back to $3.00. Very bad according
to the text, but many readers would still be happy with a 300% profit!
Perhaps the best example of the problems with this book is
the failure to understand the survivor bias in the construction of Indexes.
Winner, or survivor bias, means that the index is comprised only of winners. It
is a less than accurate way to measure market performance. He discusses
survivor bias on page 169, but through the use of a basketball analogy manages
to miss the essence of the problem. His conclusion: US Stock returns suggest
that the US has been the luckiest of all countries.
Statements such as “In a rational market, prices move like
coin flips,” are indicative of the conceptual problems with the rest of the
book. Failure to understand that price events are dependant events and that
coin flips are independent events leads to some unusual conclusions. The
challenge is not between rational and irrational behavior, but in the way that
different people take what they believe to be rational action and develop many
responses to a single situation. Understanding this behavior gives a trading
edge. The lizard brain does have as role to play, but not in this book.
Those who trade the market will find this book has
little to offer in terms of new perspectives.
View our Privacy and Internet Security Policy
guppytraders.com Pty Ltd,
ACN 089 941 560