In finance, technical analysis is an analysis methodology for analysing and forecasting the direction of prices through the study of past market data, primarily price and volume. Behavioral economics and quantitative analysis use many of the same tools of technical analysis, which, being an aspect of active management, stands in contradiction to much of modern portfolio theory. The efficacy of both technical and fundamental analysis is disputed by the efficient-market hypothesis, which states that stock market prices are essentially unpredictable, and research on whether technical analysis offers any benefit has produced mixed results.
Jesse Lauriston Livermore was an American stock trader. He is considered a pioneer of day trading and was the basis for the main character of Reminiscences of a Stock Operator, a best-selling book by Edwin Lefèvre. At one time, Livermore was one of the richest people in the world; however, at the time of his suicide, he had liabilities greater than his assets.
Swing trading is a speculative trading strategy in financial markets where a tradable asset is held for one or more days in an effort to profit from price changes or 'swings'. A swing trading position is typically held longer than a day trading position, but shorter than buy and hold investment strategies that can be held for months or years. Profits can be sought by either buying an asset or short selling. Momentum signals have been shown to be used by financial analysts in their buy and sell recommendations that can be applied in swing trading.
A pairs trade or pair trading is a market neutral trading strategy enabling traders to profit from virtually any market conditions: uptrend, downtrend, or sideways movement. This strategy is categorized as a statistical arbitrage and convergence trading strategy. Pair trading was pioneered by Gerry Bamberger and later led by Nunzio Tartaglia's quantitative group at Morgan Stanley in the 1980s.
William J. O'Neil is an American entrepreneur, stockbroker and writer, who founded the stock brokerage firm William O'Neil & Co. Inc in 1963 and the business newspaper Investor's Business Daily in 1984. He is the author of the books How to Make Money in Stocks, 24 Essential Lessons for Investment Success and The Successful Investor among others, and is the creator of the CAN SLIM investment strategy.
Financial modeling is the task of building an abstract representation of a real world financial situation. This is a mathematical model designed to represent the performance of a financial asset or portfolio of a business, project, or any other investment.
Money management is the process of expense tracking, investing, budgeting, banking and evaluating taxes of one's money which is also called investment management.
The force index (FI) is an indicator used in technical analysis to illustrate how strong the actual buying or selling pressure is. High positive values mean there is a strong rising trend, and low values signify a strong downward trend.
Joel Greenblatt is an American academic, hedge fund manager, investor, and writer. He is a value investor, alumnus of the Wharton School of the University of Pennsylvania, and adjunct professor at the Columbia University Graduate School of Business. He runs Gotham Funds with his partner, Robert Goldstein. He is the former chairman of the board of Alliant Techsystems (1994–1995) and founder of the New York Securities Auction Corporation. He is also a director at Pzena Investment Management, a firm specializing in value investing and asset management for high-net worth clients.
In finance, a calendar spread is a spread trade involving the simultaneous purchase of futures or options expiring on a particular date and the sale of the same instrument expiring on another date. These individual purchases, known as the legs of the spread, vary only in expiration date; they are based on the same underlying market and strike price.
Lawrence D. Hite is a hedge fund manager who, along with Ed Seykota, is one of the forefathers of system trading. He is the author of the book, The Rule: How I Beat the Odds in the Markets and in Life—and How You Can Too, which was named a Wall Street Journal, LA Times, and Porchlight Books bestseller.
Linda Bradford Raschke (/'ræʃki/) is an American financier, operating mostly as a commodities and futures trader.
Trend following or trend trading is a trading strategy according to which one should buy an asset when its price trend goes up, and sell when its trend goes down, expecting price movements to continue.
Hand signaling, also known as arb or arbing, is a system of hand signals used on financial trading floors to communicate buy and sell information in an open outcry trading environment. The system is used at financial exchanges such as the Chicago Mercantile Exchange (CME) and the American Stock Exchange (AMEX). The AMEX is the only U.S. stock market to permit the transmission of buy and sell orders through hand signals.
Francis D. K. "Frank" Ching is an architecture and design graphics writer. He is Professor Emeritus at the University of Washington.
Moorad Choudhry was formerly Head of Business Treasury, Global Banking and Markets at Royal Bank of Scotland.
William Delbert Gann or WD Gann, was a finance trader who developed the technical analysis methods like the Gann angles and the Master Charts, where the latter is a collective name for his various tools like the Spiral Chart, the Hexagon Chart, and the Circle of 360. Gann market forecasting methods are purportedly based on geometry, astronomy, astrology, and ancient mathematics. Opinions are sharply divided on the value and relevance of his work. Gann authored a number of books and courses on shares and commodities trading.
Richard L. Peterson is an American behavioral economist and psychiatrist. He has developed behavioral finance-based quantitative models, imaged the brains of test subjects while play-trading, and is a writer and consultant in the psychology of financial decisions and the mining of sentiment in social media. Peterson developed text mining software to identify and quantify economically predictive sentiments, and speaks widely in the area of behavioral finance and social media analytics.
Pyramid trading, also known as pyramiding, is a trading strategy which consists of adding to an existing trade or position as the price moves in the expected direction. Doing so reduces the risk levels of an investment, with traders using small increments to increase their holdings rather than betting big from the start.
Jason Goepfert is an American researcher and columnist focused on the development of behavioral finance. Prior to founding Sundial Capital Research, he was the manager of back office operations for Deephaven Capital Management, a Minnesota-based hedge fund, and Wells Fargo's online brokerage unit.
