Fooled by Randomness by Nassim Taleb Review
Turn on your TV and put on your favorite news channel after a sharp move on the market, a currency pair, etc. Wait, you don’t have to go that far, just go to Bloomberg or Reuters and you’ll always see an explanation of the “sharp move” it happened because the traders and investors took profits, traders and investors digesting the new info on the global crisis, etc.
All these news sites and channels play the past prophets. This information would be useful ahead of time, unfortunately no one knows how traders and investors are going to react. This is what hits book deeps in.
Should we blame the news channel or news sites about this? Of course not, this is just the way that we are wired, we need an explanation of everything.
Picture this scenario: I just caught a cold!!! Ahh must be because I got my feet wet earlier today. But the reality is that not every time you get your feet wet you get sick! But you just need a reason for it. See what I’m talking about?
Now, I don’t fully agree with the author, I think most market movements are not random, therefore we can profit from the markets, if the markets were random, there were no traders or investors. But let me tell you something, I don’t need to think like Nasim Taleb to like the book, he has something to say about these matters. And this book opens your mind to new possibilities.
I thought the book was a little dense, and at times the author seems a little arrogant and for some reason he doesn’t like news presenters…
You should consider reading this book! I can’t wait to start reading his other book “The Black Swan”, it’s on my shelf already, but I got others in the line.