In financial markets, the “majority is always wrong.” When the investing majority or the crowd is overly bearish, this is the best time to be buying stocks. When the crowd is overly exuberant, this is the time to be...
Latest Posts
Think Like a Trader
Gary Norden looks at what it takes to succeed in trading. The best poker players or traders can trade each situation on its merits and may play the same hand or trade the same price in completely different ways on different...
Do you Know What You Know
Wall Street quant analyst and top-drawer poker player Aaron Brown looks at how some basic logic and the application of your risk brain can help traders and gamblers alike. About 20 years ago, I wrote an article criticizing poker...
Comparing Binary Betting to Spread Betting – Advantages/Disadvantages
How Binary Betting Works – Binary Bets A good example of the repackaging of a complex product is the concept of binary bets. The spread betting firms in the UK have translated the probability factor in the option’s...
Binary Bets Explained and How to Use Them
Binary options are quite simply a form of option that offers one of two outcomes and hence the name ‘binary’ which typically describes an outcome of either 0 or 1. They are similar in style to that of Fixed Odds with the ability...
Binary Bets – An Introduction
A new concept in financial spreadbetting was launched in the United Kingdom in 2003 when IG Index introduced binary bets. In much the same way as traditional financial spread betting, a binary bet has a continuous two-way price...
Gambling on Derivatives
It could rip your guts out overnight… the biggest, most potentially lucrative, and destructive market in the world. “In no circumstances enter the derivatives trading market without first agreeing it in writing with...
Expectancy
Expectancy of a stock trading system must be positive if you want to make a profit Las Vegas. Great food, show girls, and a multi-billion dollar gambling business. The money made by the casinos is only matched by the profits on...
The Statistics of Staying Alive – Losers Can Outnumber Winners: It’s Still OK
Get a firm grasp on the key concepts behind options trading money management [Editor’s note: The idea of long losing streaks may seem abhorrent to you as a trader, but the number crunchers at Schaeffer’s Investment...
Luck, Coincidence, Probability and Risk
No doubt that luck playes an important role in trading. Trading is about taking risks. Here’s a fascinating story about two famous traders with differing attitude to risks and chances. [this is a must-read!] The Visit:...