Category Archives: Trading
Legal Insider Trading Biotech
Let’s say a biotech CEO learns that, in two days, her company is going to announce clinical results that will surely boost its stock price. She can’t legally buy up a bunch of the company’s shares right then — that would be the bad kind of insider trading — but she can cancel a scheduled 10b5-1 sale to avoid dumping stock just before its price soars.
https://www.statnews.com/2016/08/08/insider-trading-biotech/
Good Post on Position Sizing
Good post on position sizing techniques of qualitative managers. Good quantitative managers spend a lot of time on this, but their strategy with robust historical data lends itself to it. By now I’m sure most people have heard of kelly betting? I think most qualitative PM’s utilize some form of fixed position sizing based on trial & error….I think there is room for improvement.
https://whatheheckaboom.wordpress.com/2010/10/30/position-sizing-in-value-investing/
Edit: 7/14/15
Another excellent post/pdf on position sizing h/t @rjs2006
http://www.grizzlyrockcapital.com/Diworseification_GrizzlyRock.pdf
Japanese Day Trader
This is another trading tale I’ve heard over the years, Japanese day traders that make millions that started off with a huge fat finger fade trade in J-Com. Trades a momentum strategy, treats trading like a video game rather than an intellectual endeavor.
This seems to be a new guy but there’s all kinds of youtube videos and interviews if you look hard enough on the other guy mentioned BNF. Here’s a few:
https://www.youtube.com/watch?v=2LEmIOR521o#t=123
https://www.youtube.com/watch?v=La-WIYNjgoY
“All he does is eat Ramen and pick winners.”