Trading Psychology Archive
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Stock Market Efficiency
According to investment theory, the markets are efficient. By efficient it is meant that all the information related to an equity is known by all investors and the price paid in the market is the correct price. In addition, arbitrage does not exist as all investors that see the arbitrage will trade to take advantage [...] -
Stock Market Update for July 8, 2010.
We have not gone anywhere. We refuse to look at the markets in a monolithic way. We found out that one of our trading systems was broken. Upon further investigation we found that the parabolic entry we were using was dampening our results. In addition, we decided to replace our volatility stop with a parabolic [...] -
Stock Market Trade Entry Optimization.
A lot has been written about how and when to enter a trade. However, in all the books we have read about the stock market we never encountered a discussion about how to buy stocks to get a fair price after your system generates a buy signal for the next morning. Do you chase stocks [...]