Price movement – diagnosis (2)

This post continues Price movement – market proxies (1) to study the price movement – the ruling factor of the market. Markets are established in mostly simple structures; because of that, they stand in between of everything.  The most basic function of the market is to facilitate transactions.  When everyone has a …

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Price movement – market proxies (1)

If there is one market factor that is “One Ring to rule them all”, it will be no doubt that the price movement is that only One Ring.  Effectively, price movements are the proxy of all proxies, the sum of entire market participants’ expectations and valuations, the combination of public …

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The two critical ratios and why gambling is on the different side

I would test these two ratios first on approaching any investment system: The winning ratio and the average size of wining over losing ratio.  Take it a broader way: in order to make capital appreciation (or even in life) one needs (1) win more than lose and/or (2) average size …

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Pressure from the financial markets

Weeks ago when the EU debt crisis had started spreading, I had relatively tense arguments with my investing partner about the power of government(s) in coping with challenging situations in time of crisis.  The traditional stand point holds the power of governments in settling things under political power – including various …

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Simplify the EU debt crisis

I believe that the today’s EU debt crisis is somehow more difficult to invest if comparing to previous 2008 US financial crisis.  Don’t get me wrong, I didn’t invest around 2008, my first time of joining the market is 2009, and I don’t mean just simply looking at the chart …

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A risky gold position

Quick thought on gold prices correlation with risky asset recently.  As I active watch the markets recently, between US Treasury, gold, advanced countries listed equity, forex Mundo pairs.  I’ve reached some preliminary conclusions on gold price’s behavior.  I don’t know when these characteristics would change (and when they change they would …

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Thinking about trading

– Dedicated to all of my friends who live with the market ups and downs – If anyone asks me should she get into the stock market, forex market, or whatever kinds of financial market to make some money – my answer would be “absolutely not”.  It’s quite funny that when …

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Global risk appetite

I’ve just thought out a pretty cool idea – however not a new concept – to construct a qualitative, active update-able, and relatively personal perspective (i.e. very subjective) matrix between asset classes and risk perspectives.  There is some perspectives that is pretty interesting about the correlation between (1) events and …

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