Cornell SC Johnson College of Business’ Post

I want to share a new article we wrote titled "Rethinking Participation Rates and RATS: Empirical Insights for Trading and Regulation" which is a quick 10-minute read. Two events over the last month motivated us to write this: I recently attended an STA event in DC, where the head trader of a major asset management firm voiced concerns over the SEC's recent proposal limiting the number of securities exceeding “Reasonably Anticipated Trade Size” (RATS) in a portfolio. He suggested there’s a nuanced difference in how a high % of ADV affects small-cap stocks versus large-cap stocks, a crucial distinction for asset managers. Second, there’s the issue of traders aiming for very high participation rates in liquidity-seeking algos. I recently met a client who questioned why brokers don’t account for the difference between short and long duration orders when it comes to participation rates (the intuition being that the market can tolerate higher participation rates over shorter duration).  In the article, we've taken a data-driven approach to these issues, hoping to align our quantitative understanding with the qualitative intuition that many traders have developed from experience. 

Masterful overview of momentum trading - and its relevance to current market conditions - by Nick Baltas of Goldman Sachs in an editorial for the Financial Times. Great metaphors and a few priceless phrases make this far more accessible to the average reader. Must read. Momentum parties and hangovers https://on.ft.com/3QrNb1I

Trend Reversal Indicator & Free Magazine   Explore our dual educational offering today: ·      Unveiling a novel indicator signaling trend reversals ·      Access a complimentary trading and investing magazine showcasing diverse perspectives For comprehensive details, visit our blog. Discover the essentials for forecasting price moves, capturing insights from inception to conclusion. Elevate your trading understanding with NeverLossTrading.   https://lnkd.in/eFE-CDEG     #algorithmictrading #daytrade #daytrader #daytrading #futures #learntottrade #NeverLossTrading #stockmarket #stocks #stocktrading #swingtrading #technicalanalysis #traders #trading #tradingeducation #tradingindicator #tradingplan #tradingsignal #tradingstocks #tradingstrategies #tradingstrategy #tradingsystem #tradingsucces #trendtrading #trendreversaltrading

Andrew Busch, the inaugural Chief Market Intelligence Officer (CMIO) for the U.S. government at the Commodity Futures Trading Commission (CFTC), shares profound insights on the pressing question, "Where do we go from here?" With a background of briefing White House and Congressional leaders, he unravels the intricacies of the economy, stock market, interest rates, and global commodity markets. During his enlightening session, Mr. Busch suggested strategies to overcome, adapt, and thrive in today's challenging economic landscape. #investmentfirm #wealthmanagement #StablefordCapital #AndrewBusch

Trend Reversal Indicator & Free Magazine   Explore our dual educational offering today: ·      Unveiling a novel indicator signaling trend reversals ·      Access a complimentary trading and investing magazine showcasing diverse perspectives For comprehensive details, visit our blog. Discover the essentials for forecasting price moves, capturing insights from inception to conclusion. Elevate your trading understanding with NeverLossTrading.   https://lnkd.in/eKQ_uyB2     #algorithmictrading #daytrade #daytrader #daytrading #futures #learntottrade #NeverLossTrading #stockmarket #stocks #stocktrading #swingtrading #technicalanalysis #traders #trading #tradingeducation #tradingindicator #tradingplan #tradingsignal #tradingstocks #tradingstrategies #tradingstrategy #tradingsystem #tradingsucces #trendtrading #trendreversaltrading

📈 Unlock the Secrets of Gap Trading! 🚀 Dive into our latest blog article dissecting Gap Trading Strategies – a game-changer in the stock market! 📊✨ Ever wondered how to capitalize on market gaps? Our insightful guide breaks it down, revealing the art of navigating the space between closing and opening prices. 💡💸 Ready to elevate your trading game? 🚀 Click here: https://lnkd.in/eTZqYAZN to explore the full scoop and revolutionize your investment approach! 🌐 📲 #GapTrading #StockMarketMagic #FinancialInsights #InvestSmart #TradingStrategies #PortfolioGrowth #MarketTrends #FinancialWizardry #WealthBuilding #KnowledgeIsPower #InvestmentGuide #MoneyMatters #SmartInvesting #FinancialFreedom #LearnAndEarn #StockTips #InvestmentStrategies #TradingWisdom #GapTrading101 #MarketGaps #BlogAlert #MustRead #cpfcapital #InvestWithConfidence #FinancialSuccess #ProfitableInvesting

🌟 Meet the Masters of the Market! 📈 Our latest article reveals the Top 5 Stock Traders in the World. Discover their strategies and secrets to success. Perfect for investors who aspire to learn from the best! 💹🔍 Who's your trading idol? Join the discussion in the comments! 💬 . . 📌Read more details: https://lnkd.in/gqav2yAa . #TopStockTraders #MarketMasters #TradingStrategies #InvestmentSuccess #FinancialHeroes #MarketInsights #WealthBuilding #finxpdx Share your favorite trader or insights in the comments! 🖊️👇

This is the first post in our series about famous traders, starting with Jesse Livermore. Investors have been around for centuries, investing in land, property, technology and infrastructure, based on fundamental analysis around long-term expected returns. Traders are a different breed, often paying attention to a broader set of parameters than pure fundamentals. Jesse Livermore is probably the first famous trader (as opposed to investor). Jesse Livermore was known to be a technical trader. While he didn’t use the term “technical analysis” as it is used today, he heavily relied on price charts and market data to make his trading decisions. Livermore was a master at interpreting market trends, identifying patterns, and using price action to time his trades. He famously believed that the market’s price movements reflected the psychology of the masses, and by studying these movements, he could anticipate potential shifts in market sentiment. Livermore’s trading strategies were based on his observations of market trends and the “tape” (price movements displayed on ticker tape during his time). The “Reminiscences of a Stock Operator,” the book often attributed to Livermore, portrays him as a trader who focused on understanding and interpreting market behavior rather than relying on fundamental analysis. He would watch stock price movements closely, paying attention to volumes and patterns to determine potential entry and exit points. Jesse Livermore was also an aggressive short seller (something investors generally refrain from). He famously shorted the market aggressively into the 1929 crash, making a profit of $100 million (about $1.5 billion in today’s value, in his own trading account!) One thing is common for all traders: they absorb new information quickly and objectively. And MarketReader allows traders to do so on a scale that no human has ever been able to achieve before.

This blog post explores the high-stakes game of short-term trading, with Tony Kaiser, CEO of Kaiser Trading Group. He shares his decades of experience and intuitive insights. Join the conversation! https://bit.ly/3V8sGtE

Improper Benchmarking by active funds - a historical wrong made right ====================================== Thanks Mark T. Hebner for sharing this 2011 article by Jason Zweig The article points out a glaring reality: --------------------------------- "Beating the market is easy.  Just understate its performance. Various investment promoters are touting their stock-picking prowess by comparing their returns, including dividends, to the Standard & Poor’s 500-stock index without dividends." This was the practice historically followed by Indian #actively managed funds and thankfully the Indian regulator put this improper measurement to an end in 2017-18 by making TRI as the benchmark to be used. The improper measurement was one of the reasons that Indian #actively managed funds, historically, seemed to be "outperforming" indexes ! Link to a media article regarding the change that was made by Indian regulator: https://lnkd.in/dF8UVfP7 Hemen Bhatia #etfs #indexfunds #indexing #passiveinvesting #mutualfunds https://lnkd.in/dQyfTXxP