The Willpower Trick

All credit to

Although we might not be able to resist the delicious temptations of the world — they are simply too tempting — we can outsmart them, finding ways to avoid that internal conflict in the first place. The only way to boost willpower is to recognize the inherent weakness of the will.

The “no-change” Resolution

All credit to

People are very poor at anticipating how we will behave and feel in the future. We wrongly expect that we will make different decisions tomorrow than we will today. For example, “I don’t want to go to the gym today, but I will want to go tomorrow”. That psychological crutch lets us off the hook, but does not help us lose weight.

One solution is to flip the problem around. Focus on reducing the variability of a behavior, instead of the behavior itself. i.e instead of saying “I will quit smoking tomorrow”, say “I will have five cigarettes a day for the rest of my life”. That accepts that your future behavior is unlikely to change from your current behavior, and forces you to face the reality of what you are doing, and the consequences of not changing.

The 100 Rules for Being an Entrepreneur

All credit to

James Altucher is often overexcited, sometimes insightful. Here are a selection of some of his rule for being an entrepreneur that I find interesting:

A) It’s not fun.

E) It’s OK to fail.  (more…)

It Wasn’t Me: Banks and Managing Risk

All credit to

From the comments section:

“With reference to your leader on managing banks (“It wasn’t me”, October 10th) and your observation that “there is no archetype of success”, I have been involved for 22 years in the Lloyd’s of London insurance market and have learnt many basic lessons. These include: understand correlations; calculate your exposures based upon total amounts at risk; don’t trust sophisticated models, keep it simple; and use a multi-metric exposure management approach that does not rely on one measure. Maybe Santander and Goldman Sachs did the basic exposure management parts better than the rest.”

The Way to Think Systematically About Trends

All credit to

“Systematic trading strategies…are designed to exploit recurring, non-random characteristics of price behavior in futures and forward markets. …[We] pursue the highest possible degree of portfolio diversification within relevant constraints such as, without limitation, market volume restrictions, regulatory and fiscal constraints, limitation as a result of the account size and limitations due to the restricted access of broker(s) to certain markets. “