psychology

The making of reality

How do we percieve reality? Is reality what we see or is it a product of our mind?

Gamification

If you think that the trader’s activity is similar to a game, I would like to first say it’s not. For many reasons. What makes to someone the trading activity similar to a game is a misconception of the bet. The novice tends to see a buy of a stock share as a bet, and, …

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spxbot limits

Different trading and investing styles I’m fully aware of the basic fact that every trader and investor has it’s own style. Many school of thinking, but everyone is really different, particularly in the private sector. If a private trader survives the first 18 months without being wiped out, then she/he may have the possibility to …

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Riding the wave and then… splash!

  Following my previous post, I would like to point out that approaching the a.i. advisory, you have to change your mind. With most probability, you are trained in technical analysis, various techniques to train your eye and numbers to correlate the stream of data. With an extended application to chart reading and some discipline, …

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The Psychology of Misjudgement

The Psychology of Misjudgement by C. Munger (that Charles Munger!) Download PDF file ch.munger_16_1      

The Lazy Investor and A.I.

  Artificial intelligence is for lazy investors and this for two orders of reasons: it reduces the frequency of trading actions and it relieves you from the necessity of having an opinion. Any of our action requires an opinion and, in trading, our opinions are, usually, like TNT in the hands of a chimp. It’s …

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Artificial Intelligence is different

Trading is one of the easiest activities around: few seconds and you are in position, few seconds and you are out of your position. Making it profitable is a totally different discourse. Libraries are plenty of technical and fundamental analysis books and the internet is plenty of websites that offer amazing returns. All of them …

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Do we need Artificial Intelligence?

I’m wandering: do we need Artificial Intelligence to recognize that we are in a bull market? When you are inside a trend, corrections are our friends and the fear of the top (or bottom) is our recurrent trouble. But, surfing is easy with a trendy market. Stay hungry, stay long.    

The hidden disorder of the market

Often, you read someone that has the key of the “hidden order” of the markets and is so kind and altruist to share such a knowledge with you. Can you trust? Can you believe? In my opinion, after years of testing and developing the artificial intelligence model that powers this site, there is no hidden …

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Noise

Noise is everywhere. We could even argue that trends are made out of noise. Inside massive markets, volatility can be your worst enemy: psychology again comes on stage. Every turn in the price creates uncertainty and uncertainty accumulates. Your confusion grows. It’s difficult to make correct investment decisions and timing when in confusion. If you …

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Two or three words on risk

  For the trader or the investor, the word risk is one of the principal keywords. Nobody knows what risk really is, so relax. On the other side, everybody knows what risk means: as animals, we continuously react to external stresses under a risk based strategy, intended to minimize the possible negative consequences. It’s something …

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The Realm of Imprecision

Shown in the chart: 1 daily bar forecast comparison with actual close. I get confirm that there is a widespread one day lagging in computations. Need to work on it. Except bars projection, all other indicators read the realtime status, now. They do not project future values, they just get a reading of the edge. But …

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