ARTICLE SYNOPSIS ...Stocks & Commodities V. 24:7 (58-61): Get That Edge In Your Trading by Clem Chambers When knowing the bid and ask is not enough, electronic order books like NASDAQ TotalView can give retail traders the tools to succeed. There is no such thing as too much information when it comes to investing and trading. On a level playing field, if used in trading, our money will simply earn a little more than if it were parked in a certificate of deposit. Not many of us would go to the expense and trouble of speculation if that were the case, and for every trader happy to live without alpha?, there are a ...
ARTICLE SYNOPSIS ...Stocks & Commodities V. 24:13 (46-48): Using Financial Message-Boards by Clem Chambers Extract information and trends from the pools of information available on message boards. Market pricing is all about information flow. One of the tenets of efficient market hypothesis is that all information available is already factored into the price of an instrument, be it a stock, a commodity, or a bond. However, one of the glitches that makes the efficient market hypothesis just that --a hypothesis and not a law -- is that all available information is simply not factored into the price. Many facts and ...
ARTICLE SYNOPSIS ...Stocks & Commodities V. 23:11 (16-19): Applying Pit-Trading Techniques To Electronic Trading by Clem Chambers Just like every other established futures market, the London International Financial Futures Exchange (LIFFE) used to have a pit where colorfully jacketed traders stood and bellowed their orders back and forth. But in recent years, pit trading has made way for electronic trading and the old floor traders have either retired, gone to the US to work the pits there, or made the transition to screen trading. Those who hoped to make it trading electronically have found it hard to get by;...
ARTICLE SYNOPSIS ...Pack your bags! Whether you're looking for adventure or assurance in your options, spouses and tulip bulbs are no match for today's exotic varieties....
ARTICLE SYNOPSIS ...Value investing is a conservative -- perhaps the most conservative -- way to invest, but some have considered it the most boring. Is it? Or is it the safest way to keep flush?...
ARTICLE SYNOPSIS ...Stocks & Commodities V. 22:11 (78-81): Noise And Time Series by Clem Chambers Does signal processing help in determining future price movements? After reading this, you may be tempted to explore further. I t's an unhappy fact that thousands of people comb over market time series every single day. Whether they are drawing lines on paper, crunching numbers in Excel, or programming backtesters, they are all looking for the same thing: a way to make money trading using the historical record to predict the future. According to the efficient market hypothesis, this of course is impossible. Fortu...
ARTICLE SYNOPSIS ...Finding Out About Fractals by Clem Chambers How are fractals related to the financial markets? Fractals hold a powerful mystique, but few truly understand what a fractal is and how it relates to the market. To most, a fractal is a fantastically beautiful graph with curly edges that seems to have a hypnotic grip on the viewer. Expressed as images, fractals have an almost-magical charm, while the word itself, coined and popularized by scientist and mathematician Benoit Mandelbrot, has taken on an almost incantation-like property, as though it were a synonym for "abracadabra." You don't have to...