Portfolio Management Software
This tutorial written and reproduced with permission from Peter Ponzo (Pairs Trading – Part II) As an example, let’s consider a couple of car manufacturers: General Motors and Ford. Over the past five years their weekly stock prices have changed like Figure 1. They tend to move together, eh? […]
This article reproduced with permission from Brett Steenbarger Numerous books have been written on the topic of trading success. Nevertheless, it is unclear how expert traders obtain their expertise. Several explanatory models are implicit in market writings: • The psychological model – What makes great traders, this model asserts, is […]
Trading systems or strategies use a predefined set of trading rules to generate objective buy and sell signals. While the variety of trading systems is almost limitless, most profitable trading systems have certain elements in common. Whether you build your own strategy or purchase one, trading a strategy with these […]
By Peter R Locke, Steven C Mann November 2000 Abstract / Introduction: Recent evidence (e.g. Odean, 1998a) describes investor behavior that is at odds with traditional economic theory. These alternative behaviors, such as those consistent with the disposition effect or overconfidence, form the basis for recent “behavioral” explanations for asset returns […]
The following situation happens quite often to many traders. Look it over and see if it has been happening to you: You have been faithfully following your trading plan and the rules you’ve set for trading. By following them you are now in a trade that doesn’t look so good. […]