To The Moon

In this article, the main focus will be on the best-selling book in technical analysis from Stan Weinstein “Secrets for Profiting in Bull and Bear Markets”, as well as his general teachings.BioNot many things are known about his life. He likes to keep his private life, private.Stain Weinstein holds a degree in economics, although he claims that he “put his degree on the side” during his career.First published in 1988, the “Secrets for Profiting in Bull and Bear Markets”, has become a market classic in the field of technical analysis.He is married and has three daughters.Stage AnalysisWeinstein is famous for his “Stage Analysis”. Stan identified that historically, every asset follows the same price action cycle, and dived into four stages.Stage 1 — The price has been dropping for a while an

In this article, the main focus would be the MSCI Global Industry Classification Standard (GICS) that defines sectors, and industries. $MSCI Inc(MSCI)$HistorySince 1999, MSCI, S&P, and Dow Jones have collaborated in order to create the Global Industry Classification Standard (GICS). The goal of the documents is to standardize the categorization and classification of securities in the investment process.SectorsAt the top level, as the broader categories, are the sectors, which are 11:EnergyMaterialsIndustrialsConsumer DiscretionaryConsumer StaplesHealth CareFinancialsInformation TechnologyCommunication ServicesUtilitiesReal EstateIndustriesEach of these 11 sectors, of course, has corresponding industries, and in the following ex

Recently, the media was talking about the U.S. debt ceiling and the struggle that the U.S. government had to convince the U.S. Congress to approve additional borrowing.In this article, the main focus will be on the Modern Monetary Theory in contrast to the U.S. debt ceiling.The Debt CeilingSince 1917, the U.S. Congress has had the power to “To borrow Money on the credit of the United States”, given by Article I, Section 8 of the U.S. Constitution. This mechanism sets a limit on the amount of national debt that the U.S. Treasury can hold.This debt can be used for paying social security, military salaries, tax refunds, and more. It basically helps the U.S. government’s revenues, which are mainly derived from taxes, to meet its expenditures.The U.S. government is not the only country in the w

There are many things to be learned from the failures and successes of others. LTCM was the start of the 90s of the investment world, but it was short-lived and it didn’t bring its goals to fruition.Photo by alevision.co on UnsplashUntil 1991, John William Meriwether (born in 1947) was a bond trader at Salomon Brothers, one of the five biggest investment banks in the US at that time. This company was so influential that Salomon’s CEO was named “the King of Wall Street”.During his time there, John W. Meriwether was the head of the firm’s bond trading desk until the company, through Paul Mozer who worked in Merithether’s office, was involved in a bond trading scandal, in which Salomon Brothers, a primary dealer between the US government and other market participants, bided mul

Arbitrage is a method of profiting from price or rate discrepancies when the same or similar assets are being traded in different markets or in different forms.Photo by Shubham Dhage on UnsplashTriangular arbitrage is a more complicated form of arbitrage in which, not one, but three assets are been traded in order to profit from price discrepancies.In Wikipedia, one can find the following image. In it, is being detected a complete turnaround of a triangular arbitrage trade.The starting point is $5'000'000, which would be used to buy Euros at a 0.8171 exchange rate. The initial dollar amount is now converted into €4'085'500, and this would be also used to buy British pounds at a 1.1910 rate. Finally, the £3'430'311 would be used to buy back dollars at a 1.4650 rate, which would result in $5

My love for historical quotes is not something that I developed recently. I was always noting interesting quotes. I find them as one-sentence reminders for correcting one's mentality. Below you may find a small part of my collection as well as some personal comments, expressing personal opinions.Photo by Jez Timms on Unsplash“… opportunities are like buses, there’s always another one coming.”— Richard BransonMaybe this quote is my favorite. I was recently reading Tom Hougaard’s book “best loser, wins”, and something that he was repeatedly mentioning is that a trader needs to have the belief that his or her system works, and of course, that the market would always have enough opportunities for every trader so he or she could be profitable.This quote is a constant reminder that there are alw

Continuing from “your starting guide on price action and Japanese candlesticks”, in this article we are going to start building our price action toolkit with our first single candlestick recognition and meaning.Trend Bars versus Trading Range BarsAl Brooks in his book “Reading Price Charts Bar by Bar” start by defining the two different types of Japanese candlesticks by saying that “every bar is either a trend bar or a trading range bar”.The trend bars have a body that is at least half the size of the overall bar and it shows either a bullish or bearish tendency.The trading range bars are closer to what it would be defined as doji, where the buyers and the sellers came to an almost equilibrium and thus the candlestick doesn’t show any direction tendency.With blue arrow the trading bars, an

Maybe one of the most controversial people in finance can be considered to be the famous trader George Soros.In this article, we will examine the life of “the man who broke the pound”, George Soros.George Soros was born in Budapest, Hungary in 1930. Soros and his family, coming of Jewish descent, lived in turbulent times. His father Tivadar even got captured as a prisoner of the Russian army during the first world war. Their initial name was “Schwartz” which would later be changed to “Soros” to camouflage their Jewish descent.At the age of thirteen, George Soros witnessed the German occupation of Hungary during the second world war.After four years, at the age of seventeen, George Soros will leave Hungary for Paris, and eventually to England, with the help of a Hungarian government collabo

Continuing the “A Relatively Quick Probability Crash Course” article series, this article will be examined the Bernoulli Trial.Daniel BernoulliDaniel Bernoulli (1700 — 1782) was a Swiss mathematician and physicist from the Enlightenment era that was born in the city of Groningen, in the Netherlands. He grew up in a distinct family of mathematicians. He lived and worked mainly in the Swiss city of Basel in Switzerland as a professor at the University of Basel from 1733 until his death. Until this day he is remembered for his contributions to fluid mechanics and probability and statistics. The concept of a Bernoulli trial is described in his book “Ars Conjectandi” (1713).Bernoulli TrialA Bernoulli trial, also known as a “binomial trial”, is an experiment that has two outcomes. One of them is

There are many ways to price the market. One famous that accomplishes that is the CAPM method, which is analyzed in “The Capital Asset Pricing Model (CAPM) by William Sharp” article. The downside of the CAPM method is that it is more suitable for longer-term use. For a shorter, intra-day use, a more practical approach would be to price the market according to the market action theory.Photo bySasun BughdaryanonUnsplashThe Life of Pail Samuelson and The Market Auction TheoryPaul Samuelson (1915–2009), was born in Indiana in the US and grew up the Chicago. When in high school, Samuelson started studying the stock market, up to the point where he helped his teacher to select stocks in which he would invest. It was the booming market of the ’20s after all.Samuelson would receive his bachelor’s