Category Archives: Trading

Monitoring Trader’s Emotions

 

http://www.bloomberg.com/news/articles/2016-09-01/wall-street-s-next-frontier-is-hacking-into-emotions-of-traders

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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

Believe it!
Believe it!

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

Ramen!
Ramen!

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.

http://www.bloomberg.com/news/articles/2014-09-25/mystery-man-moving-japan-made-more-than-1-million-trades?utm_content=bufferc8e8d&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer

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.”