The Dao of Capital

• Introduction

  capital is not a noun but a verb, a circuiting process, similar to Dao. We shall not focus on profits, which is the *end *of investing, but the roundabout means of profits.

  “The common thread throughout was always orienting to means, not ends—seeking harmony with the market process, not profits.”

  Book Structure

  “Across the span of these eight chapters, we establish the foundation of The Dao of Capital, the roundabout means toward our desired end. Only someone who is willing to defer the immediate objective, and read on topics that at first may seem only tenuously related, can benefit from the last two chapters and the discussion of capitalistic investment strategies known as Austrian Investing.”

  Chapter 1

• 提到了太极推手（走滑、粘随）和陈氏太极中的“缠丝劲”（比如移动重心不可直接左右晃，而要沉转退转），来证明“roundabout”

• 讲Everett Klipp, Babe Ruth of the CBOT的交易思想：

  1. Your only edge is you could demand an edge (quoting) and wait for other’s demand for immediacy;
  2. Accept a loss when it is small (before becoming disaster), i.e. love to get small lossesp

• 作者说如果自己的孩子只能读一本经济学教材，那就是 Henry Hazlitt - Economics in One Lesson

  “Economics in One Lesson is an expansion on the essay, “That Which Is Seen, and That Which Is Not Seen,” by nineteenth-century French economist Frédéric Bastiat”

• the state of rest, when all orders have been executed. The state will end with any new order/info/etc.

  The state of rest is an intermittent end to all immediacy

  • 并没有读懂作者提到的Mises所说的“final state of rest”

• 感觉有点东西但没读懂？

  “The market was not a casino game of flashing random variables (despite untold lives still spent studying their stochastic properties), but an intricate coordinating and balancing price-concession process.

• 根据自己的position，lead market by flushing out hidden immediacy of market来赚position的钱：“leading the market into imbalance, a momentary false state of rest away from its final state. ”这就很像太极推手

  一口气读了50页的The Dao of Capital，读到Chapter1的”Moving On” sub-chapter