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Posts Tagged ‘market’

Probability is On Your Side with QuantDNA

August 10th, 2010

The Rolling Stones–via Irma Thomas–just needed time on their side. But for traders, you need time… and probability.

That’s where QuantDNA comes in. QuantDNA offers the probability of price movements for assets based on a proprietary formula.

QuantDNA is not a new site; they’ve actually been at the financial biz for a while and are associated with some of Wall Street’s big names. I was impressed with the first version. However, they’ve worked on some upgrades and updates to make it one of the most impressive financial tools out there today.

This is actually QuantDNA 2.0.

Read more…

Accelerating Technology, Investing, Money, Online Investing AI , , , , , , , ,

How Will Quantum Computing Affect Finance?

April 26th, 2010

Dwave

This is a mind experiment.

But it starts out with some facts.

In a recent announcement, a company called Dwave detailed that certain quantum effects are behind its latest technological breakthrough. Without getting too technical, Dwave is trying to develop a quantum computer. A quantum computer uses the, frankly, spooky ability for a quantum bit, or qubit, to be in multiple position for computational processes.  This superposition leads to staggering amounts of processing power.

For each qubit, the processing potential increases exponentially.

Dwave says they have mastered an annealing quantum processes, which isn’t quite complete quantum computing, but is close and results in much higher processing power.

So what would the increased computing power of Dwave’s or any quantum computer mean for traders and investors.

Read more…

Accelerating Technology, Automated Trading, Internet, Investing, Money, Online Investing AI , , , , ,

How Your Beliefs Make Money

March 10th, 2010

shioshvili @ Flickr

This isn’t New Agey hocus-pocus, necessarily.

This is reality.

The things you think about. The things you believe. The things you read and watch. The things that make you confident and the things that make you fearful are the very foundation of wealth generation–on a lot of levels.

The pricing of stocks and other assets reflect beliefs about their value. These beliefs aren’t just the thoughts and opinions of analysts and big-time market movers, they reflect your ideas, too. Now, your personal belief may just represent a fraction of that price, but when merged with the collective sense, you have mass market psychology.

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Internet, Investing, Money, Online Investing AI, US Economy , , , , , , ,

Is Marketing Destroying America?

February 10th, 2010
Pic by Peter Zoon @ Flickr

Pic by Peter Zoon @ Flickr

Americans know how to market.

From the pet rock to Milli Vanilli, Americans can package and promote the most unlikely products. It’s nothing new. Gone with the Wind made the Civil War sexy. The Wizard of Oz let people look over the rainbow in the depths of the Great Depression.

There’s nothing inherently wrong with that. But, a preoccupation on marketing is weakening product development. Companies, for instance, are spending more time and effort promoting products than conceptualizing and creating them.

It’s become a global obsession.

Read more…

Accelerating Technology, Internet, Money, Online Investing AI, Success, US Economy , , , , , , ,

Why The Economy Will Crash (Again)

October 27th, 2009
gbaku@Flickr

gbaku@Flickr

Economically, the recovery from the deep recession appears to be intact.The market’s back above 10,000 and company earnings have improved.

Although, economists are among those who are saying that the recovery isn’t nearly as strong as hoped–or promised.

A new administration with new ideas was the primary reason that most people expected a strong rebound. Plus, a historic worldwide stimulus effort by the global economic superpowers should have boosted the market precipitously.

Despite this, problems persist. Unemployment rates, although a lagging indicator, hasn’t crawled out of the basement. The housing market remains anemic. Business activity is skittish.

Some folks aren’t even expecting a recovery; they believe we’re heading from another crash.

Read more…

Investing, Money, Online Investing AI, US Economy , , ,

Are Humans Programmed To Lose Money?

September 28th, 2009
L.Marie@Flickr

L.Marie@Flickr

As the maker of Automated Trading financial systems, we offer a few reasons why computer-based trading can help investors. They operate continually. They edit out emotions. And, they can be programmed for success.

When it comes to trading, it seems that most humans are programmed to lose.

This week, we’ll take a look at the ways you and I can be programmed to lose, especially when it comes to trading decisions.

In today’s post, we’ll take a look at social proof, a psychological theory, that may exert a powerful influence on unsuccessful trading strategies. Social proof is nothing more than “follow the leader,” except, in this case, no one knows who the leader is. And no one knows why the leader is the leader.

Here’s how it works.

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Automated Trading, Investing, Money, Online Investing AI, Success , , , , , ,

Seven Emotions Investors Can Do Without

August 27th, 2009
hjl@Flickr
hjl@Flickr

The market is run by emotions. It’s also ruined by them.

Despite what the financial world wants to think–and especially wants us to think–most financial decisions, from the casual investor to the commodities trader at Goldman Sachs, are emotional trades. It’s a gut feeling, or instinct, that prompts the trades.

And, in a way, that’s OK. After all, if most people invest with emotions, that should put you right in the pack of the trading action. It’s when investors become blinded by their emotions that things go awry. They fall behind the pack. They bet too much. They sit on the sidelines too long. They hold when they should fold, and fold when they should hold.

To avoid this, you need to know which emotions are most likely to mislead your investment actions Here are the seven most deadly emotions for investors.

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Accelerating Technology, Automated Trading, Business Strategy, Internet, Investing, Money, Online Investing AI, US Economy , , , , , , , ,

Automated Trading And Zero Sum Trading

July 30th, 2009

We’ve had some great conversations on this blog with our readers about the zero-sum nature of trading. Essentially, if one trader takes a winning position, another trader must take a losing position.

The logic would then follow that eventually, if our automated trading systems are perfected and reach a deep penetration into the trading community,  there couldn’t be a market. There’s no way that everyone can win.

Or could there?

There are a few ways that trading can move beyond the zero sum theory.

Read more…

Accelerating Technology, Automated Trading, Investing, Money, Online Investing AI, US Economy , , , , , , , ,

Trading Success Secrets: The Good Times Roll Must End

June 10th, 2009
Creative Commons by a4gpa

Creative Commons by a4gpa

They say that life is a beach.

So is investing.

The undulating waves of trends and counter-trends. The froth of bubbles. The flotsam and jetsam of losses. And, sometimes, under the clear sky and hot beaming sun, the perfect wave forms.

And, like daredevil surfers, most traders paddle out to catch it.  Soon, the sea is full of fellow traders riding this wave.

Unfortunately, the summer is not endless, the wave must crash to shore, and the roll of the good times… even the best times… must end eventually.

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What Shape The Recovery Will Be. And Why You Shouldn’t Care

June 5th, 2009

recovery-options-50The obsessing continues.

For months we asked ourselves whether we were in a recession. Then we wondered if we were in a depression. Now, economists are wringing their hands deciding if we’re in a recovery, or what shape the recover will be.

There are several types of recovery that correspond to the trajectory of the recovery. Economists speculate we could face:

  • V-Shaped: A deep drop and a quick bull market recovery.
  • U-Shaped: A drop, then a gradual recover.
  • Lightning bolt: A deep drop. Recovery. And then another sharp drop.

So, what recovery will we experience?

Who cares? Here’s why.

Read more…

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