systematic vs discretionary trading

Systematic vs Discretionary Trading – The Ultimate Comparison

Algorithmic trading has gained more and more popularity over the past few years. Due to high costs and complexity, algorithmic trading used to only be available for institutional investors and traders, but with ever-improving technology, the internet, and online quantitative trading platforms, the entry barrier for algorithmic trading has never been lower. In this article, we will examine the differences between systematic and discretionary trading as well as the best way to get started with Read more

passiveindexfundinvesting

Index Fund Investing for Beginners

99% of actively managed US equity funds have underperformed their respective benchmark. If wall street professionals with decades of experience fail to beat the market, what chances does that leave retail investors such as you and me? If we can draw one conclusion from this statistic, it is that consistently beating the market is very hard. Therefore, most people would be much better off if they simply invested in the market itself instead of any Read more

best algorithmic trading platforms

The Best Algorithmic Trading Platforms of 2020

The most asked question that I get about algorithmic trading is which algorithmic trading platform is the best? I created this article to comprehensively answer this question. In this post, you will learn about 5 algorithmic trading platforms, their pros & cons, and which of these platforms is the best choice for you! Important Features of Algorithmic Trading Platforms Before I get into the actual algorithmic trading platforms, let me quickly present which criteria to Read more

cognitive bias

Trading Psychology: 10 Biases to Avoid!

Especially when money is on the line and time is scarce, human decision making can be very flawed. Trading is one of the fields where erroneous and irrational behavior patterns are especially common. In this article, we’re going to look at the most common cognitive biases and irrational decision making patterns, and how to avoid them. Being aware of these thinking flaws has two main advantages. Firstly, it helps you avoid them in your own Read more

algorithmic trading strategies

Top 6 Algorithmic Trading Strategies

Diving into the world of algorithmic trading can be exciting  and overwhelming at the same time. There are so many different approaches to developing your own algorithmic trading strategies. Especially for newcomers, this can be very intimidating. To help gain a much deeper understanding of the world of quantitative trading, I want to give you an overview of all the different algorithmic trading strategies that exist. Besides improving your understanding, this should also help you decide Read more

Probability Distribution Of Stocks

The TRUE Probability Distribution of Stock Market Returns

The goal of a trader is to best possibly position him/herself to maximize their chances of winning. To do this, it is crucial that you as a trader understand the underlying probability distributions of stock market returns. Without having a good understanding of price distributions, you might base your entire trading approach on completely flawed assumptions. This can have detrimental consequences and is one reason for financial crashes and crises. The purpose of this article Read more

Is The Stock Market Predictable

Is The Stock Market Predictable? The Random Walk Theory

What does the stock market have in common with random movement? The Random Walk Theory says everything. According to the Random Walk Theory stock price changes happen in a so-called random walk. This means they are entirely random and therefore cannot be predicted in any way, shape, or form. Due to its implications, this is a very controversial theory that has sparked a lot of debates, even among well-known economists and traders. Research studies exist Read more

Efficient Market Hypothesis Wrong

Is The Market Efficient?

A very well-known and controversial market theory is the Efficient Market Hypothesis. It states that markets are efficient which means that all available information is always reflected in an asset’s price. The controversial implication of this would be that it is impossible to reliably beat the overall market because it isn’t possible to find any under or overvalued assets. If this is true, it would make the act of actively analyzing and searching for potentially Read more

ultimate guide to bonds

How Does a Bond Work – The Complete Guide

Bonds can be an excellent investment vehicle. Sadly, they are often misunderstood and thus many investors don’t take advantage of the potential that bonds offer. Even if you aren’t interested in actually trading bonds, it can be of great use to understand the bond market and its relation to other markets such as equities. In this article you will receive an answer to all of the following questions: What is a bond? How does a Read more