Analysis Topic: Investor & Trader Education
The analysis published under this topic are as follows.Thursday, September 06, 2007
Expert Vs. The Machine / InvestorEducation / Learn to Trade
I've been coming across and reading a fair amount of material on the rise of data-driven decision making lately.Read full article... Read full article...
Tuesday, August 07, 2007
Will the Stock Market PE Ratio Expand or Contract? / InvestorEducation / Learning to Invest
Knowing whether the PE ratio is going to expand or contract is an important factor when trying to beat the market . This is the first of a four part series on which direction the PE ratio for the S&P 500 will go over the next couple of years. First, let's briefly go over how to use the PE ratio and then we will look at ways to get the underlying PE ratio for the S&P 500. It is not as easy as one might first think. In the later parts we will examine the potential for the S&P 500 PE ratio to expand, contract and then provide an opinion on what investors should do.
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Saturday, August 04, 2007
Sharpening Your Stock Trading Skills / InvestorEducation / Learn to Trade
Did you hear about the woodsman who, when asked by a friend how long it had been since he had his axe sharpened replied: “I just don't have the time for that”.
No matter how good a trader we may have become, we're still not perfect. Yet, perfection must always be our aim, and we must never be too busy to improve.
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Monday, July 23, 2007
Automated Trading Systems for Financial Markets and Recommendations for Their Usage / InvestorEducation / Trading Systems
Nikita Laukhin of PFSoft writes:
1. Introduction
Today, using information and trading platforms has become a de facto requirement for successful trading in the financial markets. Their advantages as compared to conventional trading schemes include, for example, an unprecedented speed of processing and delivery of information to end users, the level of integration with data providers, and a wide array of built-in technical analysis instruments.
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Wednesday, July 18, 2007
Options: A Three Dimensional Chess Game / InvestorEducation / Options & Warrants
"Could we look into the head of a Chess player, we should see there a whole world of feelings, images, ideas, emotion and passion." -- Alfred Binet (French Physiologist, 1857-1911)
One of my favorite pastimes is playing chess, which unfortunately I have not had the time to indulge as of late. To experience the full brunt and emotional psychology of the game try a five minute speed match against a chess hustler in Washington Square Park NYC, a mecca in the chess world. Some of those guys are FIDE rated 2200+ and you will likely walk away feeling beat-up.
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Sunday, July 15, 2007
The Trading Doctor - Finding Your Trading Edge : Introduction / InvestorEducation / Trader Psychology
The heart and soul of trading is neurobehavioral. There is no way to deny this, as evidence continues to build that traders bring themselves and their brains into every aspect of trading. With this comes irrationality and neuropsychological biases.
The only way for a trader to succeed, i.e., perform in a consistently profitable fashion, is to have an edge. Those of you who have coached or mentored with me for any period of time will recognize immediately that I continually stress three critical elements of trading: risk control, money management and edge. What is an edge?
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Monday, July 09, 2007
Trading Doctor - The Trader As Hero / InvestorEducation / Trader Psychology
Courage is more exhilarating than fear, and in the long run it is easier. We do not have to become heroes overnight … just one step at a time, meeting each new thing that comes up, seeing it not as dreadful as it appears and discovering we have the strength to stare it down — Eleanor Roosevelt
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Monday, July 02, 2007
ECB Educational Inflation Video is Propaganda with a Capital ‘P' / InvestorEducation / Inflation
The European Central Bank (ECB) has a “educational” video on Price Stability. The video is intended to be a teachers' aid. It, and associated teacher aid materials, can be downloaded from the ECB website here . For quicker viewing, the video can also be seen on YouTube.Read full article... Read full article...
Saturday, June 30, 2007
Managed Futures: A Model for Incubating Talent / InvestorEducation / Managed Accounts
The idea of traders staking other traders for a slice of profits is probably as old as trading itself. Fast forward to the late 1970s and one unearths Commodity Corp. which is remembered for launching the renown careers of Michael Marcus and Bruce Kovner. And in 1983 Richard Dennis is legendary for having made a bet with William Eckhardt which led to his recruiting and training the “turtles.”Read full article... Read full article...
Monday, June 25, 2007
The Relative Performance Derby And Other Evils Of Modern Investment / InvestorEducation / Risk Analysis
This week in Outside the Box we take a gander at the always-insightful research of good friend James Montier, who poignantly addresses the pertinent topic of portfolio diversification and the pitfalls that ensue on account of benchmarking, wherein investors obsess over relative performance and their respective tracking error. James asks the question, why does the average US mutual fund hold 160 stocks, when diversification could be achieved with around 30-40 stocks. The answer in word, benchmarking.Read full article... Read full article...
Sunday, June 17, 2007
Should Self-Sufficient Countries Trade? / InvestorEducation / Global Financial System
Countries that are self-sufficient have enough resources to meet the demands of their citizens. Such countries do not need to trade, but there is advantage to be gained by trading. These benefits are three-fold: reduced prices, a tradable surplus, and/or reduced work hours for their citizens.Read full article... Read full article...
Thursday, June 14, 2007
Economic Growth Theory: Re-Evolution And The Steady State Of M. King Hubbert / InvestorEducation / Global Financial System
Integrity, intellectual honesty, courage, focus, foresight, leadership, belief in the goodness of the American people. These are descriptions that spring to mind when thinking of M. King Hubbert. He was a visionary who believed in the power of ideas and the need to use intellectual rigour to analyse and manage change. As a research geophysicist he understood the problems posed by the reality of peak oil and the cultural catastrophe that lay before humanity unless it realised the non-recurring historical nature of the growth phenomenon.Read full article... Read full article...
Tuesday, June 12, 2007
FIAT EMPIRE - Why the Federal Reserve Violates the U.S. Constitution - Video / InvestorEducation / UK Banking
Find out why some feel the Federal Reserve System is a "bunch of organized crooks" and others feel its practices "are in violation of the U.S. Constitution." Discover why experts agree the Fed is a banking cartel that benefits mainly bankers, their clients in need of easy money and a Congress that would rather increase the National Debt than raise taxes. This important, Telly Award winning documentary is inspired by the well-known book, The Creature From Jekyll Island by G. Edward Griffin.Read full article... Read full article...
Tuesday, June 12, 2007
Money Masters - Documentary on The Federal Reserve Bank and How International Bankers Gained Control of America / InvestorEducation / Global Financial System
This film is probably the best history movie you will ever see in your life. In total it is about 5 hours of footage but worth every second. You will probably learn more in 5 hours of watching this film than you will learn in any college history class. Fasten your seat belts.Read full article... Read full article...
Thursday, June 07, 2007
Patience, An Investors Virtue / InvestorEducation / Learning to Invest
Patience is one of the most difficult skills to learn as an investor and trader. The best investors and traders understand the importance of patience. One of Warren Buffett's rules of investing isRead full article... Read full article...
Wednesday, May 30, 2007
Value Plus Growth Stock Market Investing (Part 2) / InvestorEducation / Learning to Invest
Value and growth investors who want to beat the market need to have a good understanding of a company's fundamentals before they can make a stock picking decision. Fortunately, there are a number of methods that are commonly used to examine the financial statements of a company. Basically there are three types of financial statements, the Bal ance Sheet, the Income Statement and the Cash Flow Statement.
Financial Statements
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Monday, May 28, 2007
Business Cycles Lecture 3 - Business Cycle Indicators / InvestorEducation / Business Cycles
This video lecture explains the behavior of 18 different procyclical leading or lagging macroeconomic variables/indicators throughout the business cycle.Read full article... Read full article...
Monday, May 28, 2007
The Difference Between Stock Market Investment and Speculation / InvestorEducation / Learning to Invest
The issue of successful stock market investment affects us all. Even if we are not directly engaged in the industry, all of us will need some form of pension to fund our retirement. Whether we like it or not most of our retirement funds will find their way into the financial markets. For this very reason, the issue of pensions has moved politically centre stage, in particular the investment strategies used to direct pension funds. Due to mismanagement over the last seven years, many retirement portfolios have become under-funded at best, or, at worst, totally bust.Read full article... Read full article...
Wednesday, May 23, 2007
Dow Theory Introduction and Basic Tenets / InvestorEducation / Dow Theory
The Dow theory has been around for almost 100 years. Developed by Charles Dow and refined by William Hamilton, many of the ideas put forward by these two men have become axioms of Wall Street.
Background:
Charles Dow developed the Dow theory from his analysis of market price action in the late 19th. Century. Until his death in 1902, Dow was part owner as well as editor of the Wall Street Journal. Even though Charles Dow is credited with initiating Dow theory, it was S.A. Nelson and William Hamilton who later refined the theory into what it is today. In 1932 Robert Rhea further refined the analysis. Rhea studied and deciphered some 252 editorials through which Dow and Hamilton conveyed their thoughts on the market.
Monday, May 21, 2007
Should Warrants – Warrant Investor Attention? / InvestorEducation / Options & Warrants
Many investors are excited about the prospects of a rip-roaring bull market in the precious metals sector and are presented with a variety of investment vehicles with varying degrees of risk and leverage and advice on how to invest accordingly.Read full article... Read full article...