How to write better
When I wrote my master’s thesis, I thought long paragraphs and difficult words were key. The more complicated the sentence, the more it proved I belonged in the field.
Oh boy, was I wrong.
If anything, it only shows a poor understanding. Anyone can take an idea and bury it in jargon and in handwavings. In contrast, removing unnecessary words and repetition lets you say more with less, and makes your message clear and impactful.
Usually, I write about backtesting and strategies. But given the importance of writing, I will spend some of my time on it. In the end, if you have an idea/result, but you cannot communicate it clearly, no one will listen.
The following are pieces of advice I have learned from Ben Jacobsen’s Some Research and Writing Tips and Deirdre McCloskey’s Economical Writing. They cover far more than I can fit here without making the post too long, so I have picked five rules I believe every writer should at least bear in mind.
1. If you want to say something, say it
If you have a point, say it, and say it first. Do not stall.
Your reader’s time is precious; you have just seconds to grab their attention. So, what is the main idea? Just one sentence.
Example:
This post uses a monthly-rebalanced, equal-weighted backtest to examine whether a portfolio of the highest-yielding US equities delivers excess risk-adjusted returns relative to the S&P 500.
And the better way of saying it:
The highest-yielding US stocks lost to the S&P 500: 7.9% a year against 15.0%.
Both convey the same idea, but the second one is more likely to grab the reader’s attention.
2. Cut the words
Now cut it down. Ask which words you could delete without losing what it is you want to say.
Example:
In this post, it will be shown, using a bucketed median approach, that the S&P 500 exhibits statistically significant mean reversion in the week following a large single-day decline.
And here with fewer words:
After a sharp fall, the S&P 500 usually rises.
One quick trick: search your draft for the word “that” and delete everything up to it. We find that momentum beat the market becomes Momentum beat the market.
3. Write plainly
Assume your reader is unfamiliar with the topic. Explain each idea as it appears, and drop the acronyms.
Example:
We test whether the DY factor generates positive CAR after controlling for FF3 loadings.
And here in plain words:
We test whether high-dividend stocks beat the market once you account for the usual risk factors.
4. Use active verbs, and say “I”
The passive voice hides who did what. Write in the active voice and say who did what.
Example:
It is generally believed that value beats growth.
And here in the active voice:
Fama and French (1992) find that value beats growth.
The same holds for your own work. If you wrote it alone, say “I”. Do not hide behind a royal “we”.
5. Start inside the story
Do not warm up. Think of a newspaper: it opens on the story, and if the first line does not grab you, you move on. My post on predicting World Cups had two possible first sentences.
Example:
This post applies the Elo rating system, originally developed for the game of chess, to the domain of international football.
And here is the one I used:
Elo rates chess players. The same idea works for football..
To conclude
Every rule here comes back to the first. Do not announce your point. Do not pad it. Do not bury it under a technique, a passive verb, or a page of background. Just say it!
If you take the time to write, and rewrite, and rewrite again, it pays off. Each pass makes the idea clearer, until a reader can get it in one read instead of three (or never).
Sources: Ben Jacobsen, Some Research and Writing Tips (2014). Deirdre N. McCloskey, Economical Writing, 2nd ed., Waveland Press, 1999.