Cedric Yau

Credit comes from the Latin Credo for belief. A credit crisis is a crisis of faith. The opposite of faith is fear.

Be smarter than the next guy. Be faster than the smart guy.

If a trade is causing anxiety, close it.  Volatility can only be tolerated when fastened to a thesis. 

You don’t have to be the sharpest tool in the shed if you’re the right tool for the job.

The two most dangerous times as a speculator: 1) When no one agrees with you.  2) When everyone does. 

You cannot become Crème Brûlée if you are afraid of fire.

There are two reason why a bank refuses to issue credit: They won’t or they can’t.  Prior is due to impaired borrower. Latter is due to impaired balance sheet. 

Bad loans impair balance sheet capital ratios, which make new loans impossible, which cause existing loans to default. 

The Yin and Yang of Speculation are Stillness and Boldness.  

No fortune has been made without courage and conviction.  But many a fortune has been lost pushing luck onto dwindling odds. Not to bet is a bet.  Staying on the sidelines is a bet that doing nothing will produce better results than the risk-adjusted returns of doing anything.  Staying on

Fighting the enemy:  Avoid the attack. Retaliate when his force is spent, before he has time to regather. Move when the enemy moves, attack when he attacks. Exploit the situation, be light and nimble. Attack is within defence. Defence is within attack, both real and apparent.  -Ziranmen Kung Fu

The beauty of the futures market is you get leverage for free.  

Makes Kelly-optimal bets easier.