EP 253 | Lessons from Financial History and False Expectations in the Markets | Patrick Boyle
Patrick is a finance professor, author, quant hedge fund manager and a connoisseur of financial history. As a young investor in Utility stocks, Patrick’s hunger to learn and apply the lessons of financial history helped him to maintain composure during the frenzied bubble market in the late 90’s and avoid most of the losses his colleagues suffered during the dot.com blowup.
His studiousness, and growing aptitude for finding opportunities, resulted in him making valuable connections with mentors and business partners. His desire to understand history by analyzing data led to building quantitative trading models and eventually launching a quant hedge fund Palomar Capital.
This episode is packed with so much rich information, wisdom, and humor.
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Topics & Timestamps:
Please note: Exact times will vary depending on current ads.
0:00 Background
4:00 How Patrick picked his first stocks
5:33 How the Internet and Dot.com boom influenced Patrick
8:46 Was the Dot.com boom much different from other bull markets?
14:02 Did overvaluations in Dot.com stocks tempt Patrick to sell short?
18:18 Early interest in quantitative trading
29:40 Patrick’s biggest loss and lessons learned
34:09 How has the limitations of quant trading varied over the years
36:44 Need to frequently come up with new strategies?
40:40 Easier or more difficult today than the early years?
43:50 The 2010 Flash Crash
48:10 Why only 22% of Hedge funds are purely quantitative
51:43 How was 2022 for Patrick. Why he dislikes shorting
59:42 Managing risk and false expectations
1:04:30 How to protect ourselves from scams
1:10:50 Do older strategies become effective again?
1:13:49 Patrick’s biggest struggles in trading
1:16:20 How to contact Patrick
See more show notes here:
https://chatwithtraders.com/253
Links & Resources:
– @PatrickEBoyle [twitter]
– Patrick Boyle’s YouTube Channel – https://www.youtube.com/c/PatrickBoyleOnFinance
– Book mentioned “The Education of a Speculator” by Victor Niederhoffer
* NEED ACCOUNTABILITY IN YOUR TRADING JOURNEY? LEARN ABOUT THE TRADERS ACCOUNTABILITY PROGRAM BROUGHT TO YOU BY THE CWT COMMUNITY: https://chatwithtraders.com/community/
DISCLAIMER:
Trading in the financial markets involves a risk of loss. Podcast episodes and other content produced by Chat With Traders are for informational or educational purposes only and do not constitute trading or investment recommendations or advice.
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