Category Archives: Trader education

Markets Are Algo-Event Driven

Two days ago, equity markets worldwide were spooked by Italian political turmoil and possibility of a euroskeptic government that will drive Italy out of euro. The S&P 500 fell 1.2%. Next day, according to financial media, the market rallied 1.3% … Continue reading

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Stock Picking With Chart Analysis is 80s

Stock picking dominated Wall Street when there were no other products available to traders and investors except individual stocks. Picking stocks using fundamental analysis is a complex process that requires substantial knowledge and effort but using chart analysis to select … Continue reading

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How Some Academics Misguide Traders And Hedge Funds

Some academics misguide traders and hedge funds in focusing on combating data-mining bias when in most cases this is an exercise in futility, increases Type-II error out of bounds (missed discoveries) and diverts attention from the real problem, which is … Continue reading

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SPY ETF Regular Trading Hours is Noise

This article discusses the results of a Twitter poll about a hypothetical offer for commission-free SPY ETF trading. It is shown that performance since launch has been realized due to overnight gaps while regular trading hours show a small loss.

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Drawing Lines On Charts Is Not A Strategy

Maybe one of the biggest wastes in finance is using a Bloomberg terminal to draw a few lines on a chart. But we see it done many times each day. There are some explanations why so many do this. Do … Continue reading

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