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Tuesday, 3 March 2015

The Art of Benchmarking


  1. It means in benchmarking

    You have the stand out from the crowd?


    LOL, not going to say your message behind... LOL.

    Apple is more green than Orange. Correct ?

    1. Sillyinvestor,

      Can't wait for "Yuan Siao" to come and pass so I can take off the kid's gloves...

      Still, must sneak in a very sugar-coated poke.

      So show picture and let others see what they want to see.

      Just like in your latest blog post - all I see is the love you had for your son ;)

  2. Hi SMOL,

    Don't compare apple to oranges, even though they are fruits and they contain vitamin C and eating suitable amounts keeps the doctor away.

    These days, oranges also cannot compare with oranges. To an non-orange, they all look the same with their skins and soft juicy insides, but some are mandarin, some are ang moh, some others are branded sunkist, some are wannabes grapefruits, some are sour, some are sweet and some are seedless!

    Actually the only time we can compare is if they are all the same , then again, what's the point of comparing right?


    1. LP,

      EXACTLY ;)

      Yet when it comes to investing, oranges like to follow and benchmark themselves with the apple in front.


  3. The fruit on the far right looks very much like a grapefruit.

    1. SRSI,

      You are so alert!

      What happens when a grapefruit tries very hard to benchmark and "fit-in" with the oranges?

      It will never reach it's full potential as a grapefruit :(

  4. Haha, SRSI, you've spotted an imposter among the oranges!

  5. Farmers won't be happy with no benchmarking. You mean the fruits in my farm same other farms. My fruits are premium grade hor. Same same. You siao har?

  6. Is your apple or orange comparable to WB? I think the most critical point is whether the apple or orange suit your taste?

    1. temperament,

      I like big water-melons!

      Some guys like bananas.

      Whatever makes us happy :)

  7. Hi SMOL

    Wow I can't see the grapefruit SRSI has spotted.

    But the apple is clearly standing in front of the pack.

    1. B,

      Try looking at the left and the right edges of the picture ;)

      The question is who does the apple benchmark with?

  8. wow you are the only blogger who write 1 line or post 1 pic on your post and comments will flow like waterfall :)

    1. Thanks Jimmy L!

      I'm the commercial toilet-break or half-time entertainment to the main event ;)

      I'm the green leaf to complement the red rose ;)

      And I'm the one who farted...


  9. looks like a group of soldier with the general standing in front.

    1. coconut,

      Who are those that like to stand in front?

      The question is Leadership one is born with or something we can nurture?

    2. you talk about benchmarking all the time, what is benchmarking? couldn't find in my dictionary.

    3. When you are right at the Front there is nothing else to benchmark?

      When you are right at Back, too shameful to benchmark?

      Now we know who need benchmarking?

    4. coconut,


      It means comparing with others to see where we stand.

      For eg, an investor may jump for joy that he has hit his self-imposed SMART goal of 20% return a year - that joy lasted until he learns other traders have made 40-50% returns that same year...

      It's a bit like those Singaporeans who are earning $10K plus per month who are very unhappy because of knowing some their classmates (who got worse grades) are earning $20-30K per month...

    5. CW,

      That's a very interesting observation!

      Those at the very bottom - there's no where else to go but up!

      Those at the very top - how to benchmark when there's no precedent?

      Using my Zebra story as analogy, those at the outer ring are too busy looking out for opportunities and threats - no time to do benchmarking.

      As for those deep inside the herd, since all we see are asses, there's time plenty to compare which ass is bigger ;)

    6. ok got it.

      so my point will be, yes we have to benchmark but a big but, our benchmark should be variable (not sure its the correct word), meaning it should be changes accordingly, much like our strategies changes with enviroment.

    7. people in front will always want to "chong" towards the unknown, they are fearless and they usually don't benchmark i think, they want it all!.

      people at the back are fearful of the unknown, so they follow. and to see how good they follow, they benchmark.

    8. so where am i?

      most of the time, something like 99% i follow. but very occasionally i "chong ah"!

    9. when that happen, all the benchmarking and what ever bullshit will be thrown out of the window. becos it is do or die, there is only 2 outcome possible.

    10. coconut,

      Hee hee. Lucky you say you follow 99% of the time.

      Cannot poke you liao; we are trend followers when it comes to trading ;)

      For investing, I prefer to buy quietly when no one is talking about that stock.

      I hate it when everyone is talking about a stock I'm eying... It means I'm late to the party again :(

    11. one example is zebra, most of the time they just do boring stuff like hey see i'm so attractive, my leg musle so big and i can run so fast and so on, pushing and shouting at each other.

      but when the lion attack, the poor zebra will be scremming and running for his life and the rest will put down whatever they do and simply watch.

      i know its a boring story, but so as the market!

    12. my term follow is not eactly the same as trend following la haha, the designer of my system is the leader and thats me. the executioner of my system is the follower and thats me also.

      i'm 49.5% trend following and 50.5% counter trend. i do both in my trading.

    13. coconut,

      STI boring like the Zebra... Doing the cha-cha-cha for more than a month liao... 1 step forward, 2 steps back; 1 step backwards, 2 steps forward.

      Great for range traders; but boring for me who is waiting for a trend....

      Lucky got currencies to keep me occupied. EUR/USD has finally broken out of the 1.128-1.15 trading range :)

    14. coconut,

      You are like a girl!

      You change every day like the weather!!!

      Last time tell us you are a trend follower... Now say you only "half"; you trade counter-trend too!?

      Trend following is about trading momentum. You design the trend following system so you call yourself a leader??? Like that also can?

      You win liao lor!

    15. hello, i'm a coin but sometime they call me head and sometime they call me tail. what can i say?

    16. and when did i say my system is a pure trend following system?

      when when when??

    17. long long time ago, i'm a pure counter trend (almost la) trader. it is when i change to a mixer that my trading start to take flight.

    18. oh and i set the rules and parameter, i'm not the leader who is?

      and i execute (follow the signals) the orders based on that, i'm not the follower who is?

    19. coconut,

      Sorli, sorli. My fault!

      Next time someone tells me he is also a trend follower, it's my responsibility to ask whether pure or not pure? LOL!

      Then we are on the same page.

      We evolve as the market changes.

      When the markets stop trending, I'll have to learn a new trick!

    20. Hey!

      If you say you're the boss, you're the boss!

      I'm just a grasshopper.

    21. ofcos its your fault!

      anyway i believe there is a very wide misconception on trend and counter trend becos of different inputs and timeframe. i now view chart pattern as just an ellusion, use only as a reference only but not on trading itself. thats does not mean technical trading can't make money but rather i can't make money using them.

    22. coconut,

      You have just spoken another one of those golden nuggets of truth:

      " i now view chart pattern as just an ellusion, use only as a reference only but not on trading itself. thats does not mean technical trading can't make money but rather i can't make money using them."

      This may take some newbie traders sometime to digest, especially if they were already "poisoned" by snake-oil salesmen peddling "secrets to trading success"...

      The secret is there are no secrets. Setups work until they don't work.

    23. when i saw this photo i just can't stop laughing...


    24. i will definately frame it and hang on my wall.

    25. Wow!

      Now this is an incredible shot!

      Not sure whether the weasel is brave or plain stupid?


    26. hahaha, on first look, they seems to be having a joy ride, incridible!

      now you can immagin the bird is yelling "get off my back you mother fxxxxx!!"

      really funny picture.

    27. There got to be an easier way to have a meal....

      Lucky for the weasel, the woodpecker did not fly too high!

      Eh?Why do I feel more for the weasel?

      Ah! I'm a trend follower; I am the weasel :(


    28. "so cute" screem my daugther when i show her the picture.

      i can't immagin how difficult to get a shot like that, the sharpness, the expreesion of the bird, the angle... you can can spend a million years in the wood and still can't get it.

    29. coconut,

      It's a bit like trading huh?

      Sometimes I pinch myself for being at the right time, right place, with the right vehicle :)

      I'll take luck over planning anytime!

    30. luck don't really play a part in the long run if you ask me.

      ya, that was an extreme lucky shot but if you stay in the woods long enough you would still get some pretty good shot as compare to those who don't like me.

      its all about probabilities.

    31. unlike taking photo, in trading however, luck can go both ways. you can get "kill" if you are "unlucky" so to speak.

    32. Luck will come to those who are ready, have the necessary skills and tools for it.

      You think I can take this great shot with my Samsung hand phone camera even I was lucky at the right time and the right spot?

      Obviously no!

    33. i had a dinner recently with my broker and he told me and ask me about an incident in the office.

      a dealer in his office had miss price a currency option and one of his clent saw and took advantage of it, immedaitely had a 200k profit in his account. the issue to my knowledge is still pending and i also gives my opinion to him (i'm not disclosing it).

      how lucky or unlucky these guys was.

    34. coconut,

      I've read about such "mistakes" and how they were "resolved", especially when it's between institutional traders - you still want to have a working relationship in the future.

      If the client is "retail", then that's another story....

      I think we were around with Fat 1 or 2 years ago when there's a fat finger trade in the Simsci? SGX intervened.

      I wasn't around in 87 when US had Black Monday; but that experience seeing Simsci prices drop like a stone in an instance has burned in my memory.

    35. Idiot!

      CW saw through my poke....

      Right time, right place - must also be in the right vehicle!

      Right vehicle is metaphor for Right mental state, Right tools, Right capital, etc.

      To take the picture, the man must be looking straight at life and nature and in being in the here and now; not playing with his smart phone, or distracted by worries of the future or demons of the past.

      Many are planning and setting goals; but if their heads are always down, how to spot opportunities that fly by?

    36. is a FX trade, no exchange, will have to settle in court.

      haha 87 was my first time investing ya investing, i repeat investing in stocks. i saw with i own eyes my stock went from like 20 cents (i can't really remember) to zero in no time haha...

      the stock i invest was actually a warrant ^%$*&%# hahaha

    37. coconut,


      That's the best way to learn the difference between stocks and warrants ;)


    38. someone wrote about managing risk is like that,

      you determine your loss say 2% than you buy certain amount of share and put a stop loss below so that your loss would not exceed that 2%, and better still, the up side will take care itself.

      that is managing losses not risk management. i sure hope is that easy.

    39. Risk comes from not knowing what you are doing and not having the ability to control the situation when things get out of hand. - fat blog

    40. coconut,

      There lies the difference between reading about trading and learning about trading live!

      The same word can have different shades of meaning. You are right.

      Loss management is not the same as risk management ;)

    41. managing losses is but a small part of the overall risk management. ofcos it is still important but so are the rest.

    42. bottom line is if you know how to control risk, then you will be in trouble pretty soon cos you don't know what risk means and what it can do to you. so i repeat,

      "Risk comes from not knowing what you are doing and not having the ability to control the situation when things get out of hand".

    43. my broker told me at the dinner, in his words, that all those he see making a living trading would tell him that its all down to risk management (not lost management), managing your overall exposures in an unpredictable, uncontrolable, unmanagable market conditions.

    44. coconut,

      Those spot forex brokers that went into liquidation after the EUR/CHF bombshell would surely have wished they had practiced risk management and not just loss management...

      You have given me an inspiration to write a new post!


    45. oh ya, my broker also told me there are far more broker got hit pretty hard than what was reported, his firm included but managable.

      in trading game, getting yourself killed must be always on your mind no matter how safe or how good you feel.

    46. i'm like taking candy from a baby everyday that i trade, i really feel that way, its a matter of how big the candys are and thats really how i feel!

      but, but but, lurking behind me is the mother of that baby and i have no idea when she is going to kick my ass or worst, put a bullet in my head, and thats what worry me everyday.

    47. coconut,

      You stay away from me!

      My candy don't touch!!!



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