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.
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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 »
Conventional wisdom suggests that a reverse stock split is generally bad for a company’s stock. That’s because reverse splits are usually undertaken when a stock is in danger of being delisted.
But is there any actual evidence that reverse stock splits lead to bad investment returns? And if there is, might you be able to make money from shorting reverse split stocks? Read more »
It is my belief that to succeed in the financial markets you need to have some kind of trading system in place.
Trading systems protect the trader from his ‘inner chimp‘ – the limbic side of the brain that relies heavily on emotions and gut instinct. The inner chimp is quick to react and respond to incoming dangers. It often makes snap decisions based on emotion or a feeling. Read more »
In a few hours time we will see the United Kingdom head to the polls to decide whether or not to stay in the European Union.
This long-awaited event has dominated the financial news for the last several weeks and drawn opinion from all over the world. Read more »
Keep reading to find out some interesting observations on US stocks and ticker symbols.
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The Fed cut rates back to zero, Facebook becomes the biggest company in the world and Donald Trump causes the next Great Depression. Read on to see my 10 Outrageous Predictions For 2016 and let me know what yours are…