Following Trump’s election win, I read two books to better understand him and his behavior: Games of Strategy: Theory and Application and The Art of the Deal. The game theory book was intended to understand how Trump thinks. However, he is extremely volatile and that makes it difficult to predict his behavior thus it was difficult to apply theories to his decision making. The Art of the Deal, however, was much more insightful. In an old email I characterized him as:
“He (Trump) is a winner. Looking strong is important. He’s also incredibly sneaky and untrustworthy (whatever it takes to win…)…In other words Trump uses last minute tactics to: A) strengthen his position and B) ensure his position is not weakened…As an options trader he’s a wing buyer that bullies the market to make his position in the money.”
(more…)

