Discussions among the group Only give you authentic financial knowledge

Simmons's ten trading rules: an annual net profit of 1.5 billion US dollars leading to wealth code!

george.d

He has two world-renowned titles: a world-class mathematician and one of the greatest hedge fund managers. Together with Buffett and Soros, he called the "three insurmountable peaks" in the investment world. At a time when the entire Internet is chasing after Buffett's impressive performance with an annualized rate of more than 20%, the average annual rate of return of the "Medallion Fund" managed by his "Renaissance Technology Company" has reached as high as 35%. It is a peak that is still envi

The Domino Effect in Forex Trading

george.d

what is domino effect The basic description of the domino effect is that one or two currency pairs in a currency group first move in either of two trading sessions, and then the remaining currency pairs in the same currency group follow in the same direction. In the same currency group, the remaining currency pairs will follow in the next trading session or trading day. When the first currency pair moves, it is like the first domino. When other currency pairs in the same currency group follow th

Behavioral Finance Series Part 2: How Do Price Mistakes Occur?

george.d

Are stocks of good companies equal to good stocks? Let's look at a question first, if you want to speculate in stocks, how would you choose stocks? Most people will say, "Pick a good company with potential to buy! Buffett said so, traditional finance is also taught in this way, and most people do the same." Then have we seriously thought about whether the stock of a good company is really equal to a good stock? A good company, the stock is worth 20 yuan a share; a bad company, the stock is only

Origins and Development: How Forex Trading Developed From Ancient to Modern

george.d

The foreign exchange market (Forex, FX or currency market for short) is a financial market scattered around the world for trading currencies. Except for Saturdays, Sundays and major holidays in the country where the trading center is located, financial centers around the world operate in turn according to their location, enabling the foreign exchange market to trade various currencies 24 hours a day. The foreign exchange industry has a very "heavy" history, and it is still an unparalleled financ

What is the liquidity of foreign exchange?

george.d

Those who are exposed to foreign exchange will hear the word liquidity, and those who study the financial side also know that there are liquidity providers, namely LPs. How important is liquidity to markets? In the words of famous scholars Amihud and Mendelson: Liquidity is everything in the market! 1. Liquidity "Liquidity" is a word we hear a lot, but few people understand the exact meaning of liquidity. The central bank releases liquidity, pays attention to liquidity risks, controls liquidity,

Behavioral Finance Series Article 1: What is Behavioral Finance?

george.d

Today, few people can completely stay out of the financial market, and investment has become an important means of personal wealth growth. However, the investment market always feels unpredictable and unpredictable. You can't make a lot of money in a bull market, but you lose money in a bear market; Checking the rise and fall of individual stocks every day, but buying and selling did not make much money; Full of confidence, I rushed into the bear market to buy bottoms, but found that there was o

Account Management System|The difference between PAMM, LAMM and MAM

george.d

In the foreign exchange online trading industry, PAMM account, LAMM account and MAM account, these three kinds of accounts are financial management accounts for clients, that is, account managed by fund managers. Investors and account fund managers distribute profits according to the agreed ratio, that is to say, account managers Income is derived from account performance. Other types of financial assets are rarely traded in this type of account, but in fact, traders can technically trade any ki

Behavioral Finance Series Article 6: Different risk preferences for profit and loss and decision bias of misjudgment probability

george.d

Why can't the bull market make a lot of money, and the bear market loses money to the end? Let's describe a phenomenon first. If you are trading in stocks, please contact your own experience to see if the description is correct? There are bull markets and bear markets in the stock market. In a bull market, asset prices generally rise, and you are usually in a profitable position. However, you may not be able to make a lot of money in a bull market. After 2 or 3 daily limits, you will be safe, ri

How many do you know about the six cores of quantitative trading?

紫槐

01Good trading system The secret to trading is to find a trading system that works for you. This trading system is non-mechanical, suitable for your own personality, with perfect trading ideas, detailed market analysis and overall operation plan. Winners in the risk market have their own trading systems, so looking for a trading system that suits them and perfecting their own trading system is what professional traders do almost every day in their investment careers. What is a trading system? Th

How should funds be managed?

george.d

In the financial market, investors control trading risks through effective fund management strategies. Money management is a matter of life and death for investors in the market. Success without money management is accidental, but failure without money management is inevitable. Although money management cannot affect the success rate of a trade, it can significantly reduce the potential loss from a series of losing trades. Let's talk about some of the more popular money management methods. Fixed

"Panic" can also be used to make money? One article to understand the VIX index

george.d

1. Introduction to VIX 1. What is VIX The full name of VIX is the Chicago Board Options Exchange Volatility Index (Chicago Board Options Exchange Volatility Index), which is used to measure the expected annualized volatility of the S&P 500 index in the next 30 days. In options trading, implied volatility represents the expectation of the future risk of the market, so VIX is often regarded as a leading light for the market. A high VIX market mostly means the spread of panic, so overseas VIX is al

What exactly are offshore and onshore currencies?

george.d

Offshore money (Offshore Money) refers to the currency for deposit business and transactions outside the issuing country. It should be noted here that the domestic cash currency circulating overseas is not an offshore currency. Correspondingly, traditional currencies that are not offshore are called Onshore Money. The operation of offshore currency is independent of the issuing country, so it is not subject to the laws, regulations and supervision of the currency issuing country, also known as "

Re-examining trading from the perspective of probability theory

george.d

Before discussing transactions, let's discuss randomness and probability clearly. How to understand randomness? If you flip a coin ten times, will it really come up five times? Its regularity is actually different from what we intuitively imagined, so that most people in life will misread probability. For example, we know that the probability of flipping a coin is half and half, but if you toss a coin ten times now, do you really get five heads? In fact, this possibility is only about 1/4, which

Trading: More market chasing than anticipation

eileen

Recalling that in the past transactions, I tended to strengthen the first one, dreaming of a technology that can hit every shot, and then bet heavily, and it will be done in one battle. The mistakes that are easy to make here are: On the one hand, it is very important to overestimate the position of technology in the transaction, but not all of it. It is only a part of the transaction behavior, and its weight cannot even reach half; on the other hand, it may be too high for technology. Excessive

What is asset management in the field of foreign exchange? Are there any pitfalls?

george.d

Asset management is generally the abbreviation of collective asset management. It was originally a wealth management service developed by securities companies for high-end customers. Securities companies raised funds from specific customers, and used customers' funds to invest for the benefit of customers. The investment content included stocks, bonds and currency funds, etc. etc., in simple terms, it is a business form of "entrusted by others, financial management on behalf of others, and risks

Behavioral Finance Series Article 14: Principles of Behavioral Portfolio Strategy & Size Premium and Value Premium

george.d

Does profit depend on risk or ability? Let's think about a question first. When investing, does the more profitable the investment, the greater the risk? Suppose you are competing with another person in terms of investment performance, and your income is not as good as his. What should you do if you want to surpass his income as soon as possible? The method is very simple, if you increase the risk, you can obtain possible high returns. So how to increase the risk? It is enough to allocate assets

Behavioral Finance Series Part 9: Simple Diversification and Overtrading Theory

george.d

Which is more important, capital allocation or asset selection? Please think back to what you usually do when you invest. Do you usually think about how much money to put in the bank first, and then how much money to buy bonds and how much money to buy stocks? If you want to buy stocks, do you have to think about choosing one and see what to buy? Let's look at two words first, one is "capital allocation", which refers to how funds are allocated in large categories of assets, such as how much to

Behavioral Finance Series Part 8: The Beauty Game and Insufficient Decentralization

george.d

beauty contest You may have heard of the "beauty game" theory of the great economist Keynes, which says that in a beauty contest, many beauties will show up one by one. As a member of the audience, you need to vote for one person. If the person you choose gets the most votes and becomes the beauty queen, then you get the most money. May I ask, would you choose the person you think is the most beautiful? No, because your goal is to win this game, so you will vote for the person who you think is t

Behavioral Finance Series Article 7: Narrow framing effect and mental accounting theory

george.d

Let’s first look at the story of a credit card when it was just born. When credit cards first became popular in the United States, there were lawsuits between card issuers and retailers. At issue is whether merchants should charge higher prices or surcharges for consumers who use credit cards. This is because the merchant pays the card issuer a transaction processing fee. Therefore, merchants naturally hope that the money will be paid by consumers. But the credit card institutions quit, and they

Why combine "left side trading" with "human weakness"?

george.d

Trading on the left side and trading on the right side is one of the strategic issues that technical analysts must first clarify. You can’t have both fish and bear’s paw, and you can only choose one of them. Trading on the left side refers to the operation strategy of buying on the left side of the trough of a wave of falling market and selling on the left side of the peak of a wave of rising market within a given operation period; In a predetermined operation cycle, the operation strategy is to