2012 Most read post – The JP Morgan series


Good morning last day of 2012 checking the mood of market well. This is the most news driven market we’ve had since the Greece story. You gotta be quick on your feet.

Thought of sharing the post that attained maximum readers on a day. It was May 11 2012 when the leading financial media broke the story on Thursday night about the $2bn trading loss on credit derivatives trading, which chief executive Jamie Dimon blamed on errors,sloppiness and bad judgement” and warned “could get worse”. 
Continue reading “2012 Most read post – The JP Morgan series”

Ten highs and ten lows – Nothing for India

As I write this post ..and think about mother India  “In the nineteenth century, the central moral challenge was slavery. In the india-sfSpantwentieth century, it was the battle against totalitarianism. The richest culture of the world where woman is equivalent to god only in books and temples …is suffering  due ton Gender Insensitive Society, Ignorant Govt. Unfortunately the Culture of violence against women still exists ….

The Highs from the globe 2012 :

  1. The definitive discovery of the Higgs boson particle that confirms our capacity to grasp the ways
    Continue reading “Ten highs and ten lows – Nothing for India”

Emotional Investing : @ High Cost

Most investors are no doubt familiar with the standard disclaimer “Past performance is not indicative of future results.”  downloadThis compliance truism tends to stay in the fine print, both on paper and in investors’ minds, when they make decisions on the basis of real-time market dynamics.

Even if investors purport to buy into the logic of the “random walk” argument about security prices, in practice they tend to extrapolate recent history into the future (termed recency bias in behavioral finance) when making portfolio Continue reading “Emotional Investing : @ High Cost”

Most harmful addictions are heroin, carbohydrates and a monthly salary.

A spurious tail is the performance of a certain number of operators that is entirely caused by luck, what is called the AxeJUpmCQAAIYe9“lucky fool” in Taleb (2001). Because of winner-take-all-effects (from globalization),spurious performance increases with timeand explodes under fat tails in alarming proportions. An operator starting today, no matter his skill level, and ability to predict prices, will be outcompeted by the spurious tail. He published a paper shows the effect of powerlaw distributions on such spurious tail.

Taleb’s maverick thoughts became more famous from the The Bed of Procrustes – Here are some of them that I could recall :

The three most harmful addictions are heroin, Continue reading “Most harmful addictions are heroin, carbohydrates and a monthly salary.”

High Frequency Trading

The Bank of England has just released a new paper titled “High-frequency trading behaviour and its impact on market Sandy Traderquality: Evidence from the UK equity market” . The paper is similar to the recent Kirilenko study in that it separates ‘aggressive” and “passive” high frequency traders and it uses data which identifies the counterparties of each transaction.

Before we get into some of the specifics of the paper, it’s important to note how the Bank of England defines HFT:

“The term “HFT” is generally used Continue reading “High Frequency Trading”