Category Archives: Trading

Day Traders, 2010

NYT: Day Traders 2.0: Wired, Angry and Loving It IT is hard to say how many day traders are currently plying their craft, if that is the right word, in this country. Brokerage firms track the activity and demographics of … Continue reading

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How to Do Pairs Trades

Download 2010-3-20 Running With Scissors: Trading Stocks in Pairs – WSJ.com The tactic is called "paired trading," and it is essentially a bet that the relative valuation between two particular securities will converge—in this case, Exxon and its peer Chevron. The … Continue reading

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VIX Sending Odd Signals – Sell?

Download 2010-3-20 A Buy Sign That May Mean Bail – WSJ.com The stock market's most closely followed volatility index dropped this past week to its lowest level in nearly two years. Some investors who study volatility believe low readings are … Continue reading

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Watching Insider Action for Buy/Sell Signals

NYT: More Often Than Not, the Insiders Get It Right And there is no evidence, he added, that insiders have lost their ability to tell when their own companies’ stocks are undervalued. In the late 1970s and early ’80s, for … Continue reading

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How to Implement the Currency Carry Trade

Download 2010-2-20 Running With Scissors: Dangers of Currency Trading – WSJ.com The carry trade is built on the belief that, over time, high-interest rate currencies appreciate against low-rate currencies. These days, one of the most popular trades involves selling, or … Continue reading

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Graham, Buffett, Mutual Funds – The Costs of Trading

Download 2010-2-13 The Intelligent Investor: Too Much Trading – WSJ.com Pause before you plunge. Trading costs money, raises your tax bill and can reinforce bad habits. As Benjamin Graham defined it, investing requires "thorough analysis" and "promises safety of principal … Continue reading

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Good Data on High Frequency Trading

Download 2010-2-12 High-Frequency Trader Getco Becomes NYSE Market Maker – WSJ.com Getco has become one of the five biggest traders of U.S. equities since its launch in 1999, and is also active in derivatives, bonds and foreign exchange. The firm … Continue reading

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9 Characteristics of Great Traders

Yahoo Finance: 9 Characteristics of Great Traders Thanks, Jeff! 1. 10,000 hours In his recent book Outliers: The Story of Success Malcolm Gladwell describes the 10,000-Hour Rule, claiming that the key to success in any cognitively complex field is, to a large … Continue reading

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