Recently a study called Bitcoin Speculation or Value Creation was published looking at how individual stocks react to the news that their firm is investing in blockchain technology. The authors found an average price gain of nearly 15% after the first announcement but this is typically followed by a price reversal over the following three […]
“TSLA is not just pulling customers from BMW and Mercedes but also from Toyota and Honda. Like a magic trick, while everyone is focused on Elon smoking weed, he is quietly smoking the whole automotive industry.”– Andrew Left Anyone paying attention to the Tesla stock knows that it’s one of this market cycle’s most interesting […]
It’s no secret that financial markets are getting more and more efficient and therefore more difficult for the average trader. So it’s a good idea to think creatively and consider what might lead to an edge today or in the future. If you don’t have an edge you can’t make money. Here are 10 new […]
At the time of writing, bitcoin prices were touching $15,000 having previously hit a high of $17,000 intraday. The cryptocurrency is seemingly unstoppable at this point and could well be the biggest bubble of our lifetime. The latest price increase is wild and comes as the CME and CBOE prepare to launch bitcoin futures next […]
Today’s trading edge is to go short GBTC stock (ticker symbol for the GBTC Investment Trust) and go long bitcoin in order to profit from the substantial spread between the two products. This spread is predicted to close once Bitcoin futures go live on the CBOE and CME futures exchanges in a few days time.
When times are good the economy is strong and everyone has more money to spend. So is there any relationship between consumer spending and the stock market? A new research paper suggests there is and provides a novel way of measuring consumer spending on a daily basis. Instead of looking at more traditional measures (such […]
It has now been 16 years since the horrific attacks on the twin towers. A day which changed the world and had a profound impact on millions of people. I remember very clearly what I was doing that day and I’m sure that you do too. It was a day that I will never forget.¹
It’s a fair assumption that managers will have a better insight into the financial state of the company they’re running than outside investors. A manager will act and make decisions that are based around what they perceive the outlook for that company to be. It’s also assumed that when a company makes a corporate action, […]
The world of social media has evolved rapidly in recent years. Traders and investors widely use various platforms both as a means of getting access to news and for trading ideas. Using social media as a trading indicator isn’t a new concept and the sentiment of tweets from Twitter has previously been shown to lead […]
After a period of some thirty years of increasing bond prices, and with the Federal Reserve committed to a policy of gradually increasing interest rates, the time for long-based trading strategies on US treasuries could well be coming to an end. Many, including former Fed chairman Alan Greenspan, have called the bond market a bubble […]
Traders have known for some time now that mainstream media is not a reliable source of information for predicting future price moves in financial markets. In fact, it is assumed by many investors that once a story is fully reported in the financial press, the vast majority of the corresponding price move has already taken place.
If stock picking was as simple as ticking off a few boxes it would be too easy. However, in the book Thinking Fast and Slow, Nobel Prize winner Daniel Kahneman suggests that simple checklists and algorithms are often more effective than complex models.
Conventional wisdom suggests that a reverse stock split is generally bad for a company’s stock. That’s because reverse splits are usually undertaken when a stock is in danger of being delisted. But is there any actual evidence that reverse stock splits lead to bad investment returns? And if there is, might you be able to make money from shorting reverse […]
To succeed in the financial markets you need to have some kind of system in place. Trading systems protect the trader from his ‘inner chimp‘ – the limbic side of the brain that relies heavily on emotions and gut instinct. The inner chimp is quick to react and respond to incoming dangers. It often makes snap […]
In a few hours time we will see the United Kingdom head to the polls to decide whether or not to stay in the European Union. This long-awaited event has dominated the financial news for the last several weeks and drawn opinion from all over the world.