As usual I’ve been spending a lot of time thinking and working instead of writing. But I wanted to do a post today about some new ideas.
It’s no secret that financial markets are getting more and more efficient and therefore more difficult for the average trader. So it’s a good idea to think creatively and consider what might lead to an edge today or in the future.
Here are 10 new ideas to develop a trading edge in today’s markets: Read more »
At the time of writing, bitcoin prices were touching $15,000 having previously hit a high of $17,000 intraday. The cryptocurrency is seemingly unstoppable at this point and could well be the biggest bubble of our lifetime.
The latest price increase is wild and comes as the CME and CBOE prepare to launch bitcoin futures next week. This development is likely to bring a new dimension to the bitcoin market and no-one knows how it will pan out. Read more »
Today’s trading edge is to go short GBTC stock (ticker symbol for the GBTC Investment Trust) and go long bitcoin in order to profit from the substantial spread between the two products.
This spread is predicted to close once Bitcoin futures go live on the CBOE and CME futures exchanges in a few days time. Read more »
When times are good the economy is strong and everyone has more money to spend. So is there any relationship between consumer spending and the stock market?
A new research paper suggests there is and provides a novel way of measuring consumer spending on a daily basis. Instead of looking at more traditional measures (such as personal income or consumer sentiment) the paper focuses on box office earnings. Read more »
It has now been 16 years since the horrific attacks on the twin towers. A day which changed the world and had a profound impact on millions of people.
I remember very clearly what I was doing that day and I’m sure that you do too. It was a day that I will never forget.¹ Read more »
It’s a fair assumption that managers will have a better insight into the financial state of the company they’re running than outside investors. A manager will act and make decisions that are based around what they perceive the outlook for that company to be.
It’s also assumed that when a company makes a corporate action, such as a share buyback, a merger, a dividend or an equity issue, as soon as it’s announced, the market factors that into the price to reflect the potential long term impact of the decision. Read more »
The world of social media has evolved rapidly in recent years. Traders and investors widely use various platforms both as a means of getting access to news and for trading ideas.
Using social media as a trading indicator isn’t a new concept and the sentiment of tweets from Twitter has previously been shown to lead to outperformance in various different studies. Read more »
After a period of some thirty years of increasing bond prices, and with the Federal Reserve committed to a policy of gradually increasing interest rates, the time for long-based trading strategies on US treasuries could well be coming to an end.
Many, including former Fed chairman Alan Greenspan, have called the bond market a bubble ready to pop. With this in mind, this article presents a simple trading strategy that shorts the US ten year note using the ATR (average true range) indicator.
Read more »
Traders have known for some time now that mainstream media is not a reliable source of information for predicting future price moves in financial markets.
In fact, it is assumed by many investors that once a story is fully reported in the financial press, the vast majority of the corresponding price move has already taken place. Read more »
If stock picking was as simple as ticking off a few boxes it would be too easy.
However, in the book Thinking Fast and Slow, Nobel Prize winner Daniel Kahneman suggests that simple checklists and algorithms are often more effective than complex models. Read more »