Category: Theory And Training
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Variant Perception and How the Market Is Always Wrong
““The generally accepted view is that markets are always right — that is, market prices tend to discount future developments accurately even when it is unclear what those developments are. I start with the opposite view. I believe the market prices are always wrong in the sense that they present a biased view of the…
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Hasta La Vista… Traders? (The Future Of Artificial Intelligence In The Financial Industry)
One of our favorite movies at Macro Ops is Terminator 2: Judgement Day.The early 90’s classic had Arnold at his best and changed the sci-fi action genre forever.People have always had a particular fear of technology and machines, but Terminator really solidified that picture. How many times have you heard the “Skynet” argument when it…
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The 3 Pillars Of Trading Performance
As an active trader, there are 3 key factors of your strategy that you need to pay close attention to. There’s no holy grail in trading, but tweaking and maximizing these 3 things can get you pretty damn close to one.
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Spread Thin — How The Fed Manipulates Financial Spreads
“The Fed is manipulating markets…” “Central Banks are destroying capitalism…” “Yellen has distorted true price discov… yada-yada-yada” We’ve all heard the constant chorus of central bank bashing. The ridicule comes from a diverse crowd, ranging from retail Joe Schmoes to prominent hedge fund managers… and I admit, Fed economists make for easy targets.
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The Misconceptions and Pitfalls of Options Trading
Options.They’re supposed to deliver you 1000% returns overnight, week after week right? That’s what a lot of these internet trading “gurus” will tell you anyway…But the reality is far different.Options are a zero-sum game. When one person wins, another loses.The winners are few.
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A Review Of Peter Brandt’s “Diary Of A Professional Commodity Trader”
It’s a rare opportunity to get an inside look at the trading process of a legend. But that’s exactly what Peter L. Brandt (PLB) provides with his book Diary of a Professional Commodity Trader: Lessons from 21 Weeks of Real Trading.
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Understanding George Soros’ Theory of Reflexivity in Markets
My conceptual framework enabled me both to anticipate the crisis and to deal with it when it finally struck. It has also enabled me to explain and predict events better than most others. This has changed my own evaluation and that of many others. My philosophy is no longer a personal matter; it deserves to…
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Seneca On Sticking To Your Trading Strategy
“…nothing hinders a cure so much as frequent changes of treatment; a wound will not heal over if it is being made the subject of experiments with different ointments; a plant which is frequently moved never grows strong. Nothing is so useful that it can be of any service in the mere passing.”“To be everywhere…
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Karen “The Supertrader” Goes Rogue
Famed Tastytrade icon Karen “The Supertrader” has gone rogue. On May 31, 2016 the SEC filed a complaint against Karen and her investment advisory Hope Advisors LLC.For those who don’t know, Karen achieved widespread recognition through the Tastytrade financial network. Tastytrade focuses on option selling and Karen in particular sells strangles on stock indices, which…
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Who’s Buying And Why? — The Transactions Approach
Theory turns toxic when institutionalized.Need an example?Just look at modern economics.Economists surround themselves with models that are supposed to predict everything from inflation growth to GDP.But do they work?Eh… not usually.