finance for newbies

Avant snow apres sky

  Trading is like skying. You always make the same simple moves (start, end, turn right, turn left)  and the same tracks, but never in the same way. Never the same weather, snow condition, visibility, temperature, and so on: every time it’s different. Imagine that the neural network knows the track. It does not guarantee …

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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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Closing the position

You are holding your position and then, at a certain point, you decide to close it. Deciding to close is very different from deciding to open. In the latter case you are starving, you want to chase. In the former case you have a background of days collecting gains, often a sparkling kind of magic …

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Opening the position

You have done all your homeworks and training and paper trading and you are now ready to open your real position. As instrument we will use an etf on the S&P 500, plain and edged, so that we focus only on the variations of the reference index. Before opening the position, there should be some …

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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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