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Trading – Man vs. Machines: Part 2 of a Continuing Series on “How Algorithm Trading Can Supercharge Your Trading Profit”

Trading room – Friday 16 Nov 2018

 

Part 2 – Man vs. Machine: Kasparov vs. Deep Blue

In the first part of this series on how algorithm trading can supercharge your trading profit, we look at an introduction to the world of algorithm trading and how it is a force that has changed and continued to disrupt the global investment and trading world.

You can read Part 1 here on Introduction: When humans and machines collide.

Obviously, before we look further at the power of big data analytics and algorithm trading, we would like to look at how it all started with an astounding event in 1996/1997 that captivated the entire world attention.

Continue reading Trading – Man vs. Machines: Part 2 of a Continuing Series on “How Algorithm Trading Can Supercharge Your Trading Profit”

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Market – Commodities prices outlook adding to market worries or hope?

Trading room – Thur 15 Nov 2018

The world economy has lost some steam in recent months and is likely to slow much further in the next couple of years according to some recent analyst reports.

According to an analysis in Bloomberg, markets got high on synchronized growth but the buzz is fading and an urgent question taking place is whether the equity markets worldwide can get another fix fast.

Apparently, the omens aren’t great.

Continue reading Market – Commodities prices outlook adding to market worries or hope?

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Trading – Man vs. Machines: Part 1 of a Continuing Series “How Algorithm Trading can supercharge your Trading Profit”

Trading Room – Tue 13 Nov 2018

 

Part 1 – Introduction: When humans and machines collide

 

Algorithm trading has taken the world by storm and it is time traders and traditional fund managers start to take notice.  Disruptive technologies are reshaping traditional business models and in the field of investment, algorithm trading is a potent force that is changing the dynamics of the industry and how it operates.

Institutional Investor’s (an international finance publisher) 17th-annual Hedge Fund 100 ranking of the 100 largest hedge fund firms in the world as of year-end 2017 finds that the four biggest hedge fund firms — and five of the six biggest — on its ranking rely largely or fully on quantitative strategies using computers to make their investment decisions and have continued to attract assets.

Continue reading Trading – Man vs. Machines: Part 1 of a Continuing Series “How Algorithm Trading can supercharge your Trading Profit”

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Trading – The greatest skill of a master trader: The art of doing nothing?

Trading Room – Mon 12 Nov 2018

Can you be serious? How could doing nothing be the greatest skill of a master trader? How can a trader make any return let alone supernormal profit if he does nothing?

The distinction to understand between doing nothing at certain times and doing nothing all the time is the hallmark of an elite trader. Most common trader always hunger for some kind of actions, believing that the market somehow owes them a profit which had to be made daily if not weekly.

As such, these traders find that they have to enter a trade most of the time, even when the market is moving against their trading plan. They set a planned profit target every day or week/month which had to be met irrespective of the market condition or the stock position. Continue reading Trading – The greatest skill of a master trader: The art of doing nothing?

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Trading – The mistake of relying on past successes

Trading Room – Fri 9 Nov 2018

Most common traders and investors are always searching for the holy grail in trading. Past success is no guarantee of future performance yet they mistakenly believe that there is some single solution to defining market behavior and are looking for the magical bullet and formula to define all market actions.

However, not only is there no single solution to the markets, but those solutions that do exist are continually changing. The range of the methods used by the top traders in the world, some of which are even polar opposites, is a testament to the diversity of possible approaches.

There is a multitude of ways to be successful in the markets, albeit they are all hard to find and achieve. However, this does not mean that all methods are born equal or are applicable to all market conditions.

Continue reading Trading – The mistake of relying on past successes

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Market – US elections results: Will it work out?

Trading Room – Thur 8 Nov 2018

The U.S. mid-term elections results are in. And the world markets are watching closely. The Democrats have won control of the House of Representatives in the U.S., granting them a check of President Trump’s power and policy. The Republicans, meanwhile, have kept the Senate.

It was reported that both sides in the US have claimed the result as a victory with President Trump tweeting about the “tremendous success tonight.” But he will also know that the result will allow Democrats, who could control the House for the first time since 2010, to thwart or frustrate his more controversial social and economic policies.

Continue reading Market – US elections results: Will it work out?

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Trading – Beware of trades of emotion and euphoria

What do common traders do when faced with a conflicting news that sends the market and share prices rocking back and forth?

Just like the roller coaster seen in the market and the stocks they are trading in, their emotions go on a roller coaster as well.

And that’s when they start to make bad decisions or overrate their trading ability and skills against the market.

Continue reading Trading – Beware of trades of emotion and euphoria