For thousands of years, people knew the concept of diversification. People also throughout history knew intuitionally the concept of risk. …

Behind every successful trader, there is an equally successful trading strategy. A written down plan that guides his or her moves. In this article, we are going to examine the building blocks of a trading plan, as well as how one can create one. Definition Simply put, a trading strategy includes…

Behind almost every economic model that tries to predict markets is hiding a human with rational behavior. — In this article, we will examine the predicaments that help most economic models explain market movement and behavior. I tend to think that the basis of all matters in life is philosophy. If we think that something is rational, or irrational, moral or immoral, etc. then our framework and thus…

This article will open a new category in my blog, quantitative trading. This article will set the stage before any other article that will dig deeper into the subject. Brownian Motion Robert Brown (1773–1858) observed something that would change our view of the world forever. He observed pollen grains and their movement…

The starting point of modern information technology has as a starting point the year 1945 and the machine that defeated the Enigma code, the ENIAC, and the English mathematician and cryptanalyst, Alan Turing. “The original question, can machines think?” ― Alan Turing Deep Blue and Chess Forty years of development, starting from ENIAC, led…

Let us start our investing and trading journey by talking about the most basic vehicle, bonds. In this article, we are going to examine what bonds are and how they are been used in the securities markets. What are Bonds? Bonds are categorized as fixed-income debt securities. The reason is that when we…

Gold ETFs are another ETF category that we are going to examine in this article. Here are some of the most popular gold ETFs. 01. SPDR Gold Trust Symbol: GLD Closing Price: $166.33 Annual Expense Ratio: 0.40% Overall Rating on ETF.com: A Issuer: State Street Global Advisors This ETF takes its value directly from…

At the center of our modern financial system, there is the country’s central bank. This article will be an introductory course on central banking. If we want to understand how the central bank works, we need first to understand what money is. This article will build upon the “What Really…

Extending my “Basic Money and Risk Management for Traders”, in this article we will take a look at another money management tactic, the Kelly criterion. History When Alexander Graham Bell, the inventor of the telephone, started the Bell laboratory he never knew that this legendary facility will bring so many inventions…