How the Smart Money teaches trading

New podcast from patio11 aka Patrick McKenzie, featuring Ricki Heicklen. There's a transcript too for those (like me) who prefer reading to listening.

On a personal note this topic is nostalgic to me because I learned about trading from patio11's Stockfighter challenge; I beta-tested it and was IIRC #2 to solve the "find the insider trader" challenge; I did it via the "what in this haystack is more like a needle than a piece of hay" method Patrick describes.

Playing that challenge taught me a lot about the nuts and bolts of market structure, order books, etc. One thing I did not learn there (which it's interesting to learn about from this interview) is the problem of sizing, both the easy and hard variants (if those are the right terms for them) described by Heicklen here. I have a vague sense that the harder one (being diversified, or how to distribute bets in a variety of places so as not to go bust) is related to the Kelly Criterion (if one wants to be rigorous about it, beyond just platitudes like "don't put all your eggs in one basket") but I'd love to read any resources about how to do that systematically.