Category: Trading

Predictions, Probability and Position Sizing 9

Predictions, Probability and Position Sizing

Most of us know that Astrology is bunkum and yet that doesn’t stop us from reading what the astrology section of the Sunday newspaper. Reading that does no harm, Right. After all, its more of just keeping ourselves aware or more of a time pass in nature. Prediction in markets happen regularly and here there are two types of prediction....

The Framing Effect 0

The Framing Effect

Framing Bias is a congnitive bias. From Wikipedia; “The framing effect is an example of cognitive bias, in which people react to a particular choice in different ways depending on how it is presented; e.g. as a loss or as a gain. People tend to avoid risk when a positive frame is presented but seek risks when a negative frame is...

Travails of a Trend Follower 1

Travails of a Trend Follower

Over the last few decades, Trend following has really taken off with a lot of believers flooding the streets so as to say. After all, if I were to sell you with charts like the one below, why would you not be convinced about its benefit But then again, I choose that particular chart out of the 1000’s available because...

Should Retail Investors / Traders indulge in Derivatives 3

Should Retail Investors / Traders indulge in Derivatives

Twitter is a place for discussions, collaborations, fights and what not. Today’s post has much to do with one such discussion which more or started when while replying to a friend, I put it out that I was long in Nifty (as we dwelled on how markets may behave on Monday following the carnage (if one could say that) one...

Start of a New Bull Market? 7

Start of a New Bull Market?

A Bull market in the markets is one of the best times to be invested as stocks more or less follow the herd (going up) and regardless of when you enter, opportunities are available in one sector or the other. But getting when a bull market started is easy only in hindsight and never when we are literally at the...

Does Golden Cross Work 2

Does Golden Cross Work

Friend, Nooresh Merani uploaded a video (Youtube Link) where in he literally questions using Golden Cross as a trading / investing tool. While I see loads of skeptics who believe Technical Analysis is Bullshit, I found it disappointing that Nooresh does this since he is a expert in Technical Analysis and runs courses and sells newsletters based on application of Technical...