Stock Trading News

Many traders rely on support and resistance levels to chart price movements and predict buy or sell signals. However, the effectiveness of this technical analysis strategy is a subject of debate. We’ll explore the broader question of whether support and resistance levels work.   Key Takeaways – Do Support & Resistance Levels Work? Limitations of […]

Neuro-Symbolic AI is a field of artificial intelligence and machine learning that combines the strengths of neural networks (for pattern recognition and learning) with symbolic reasoning (for logic and knowledge representation) to create better and more explainable AI systems. By merging the intuitive pattern recognition capabilities of neural networks with the logical reasoning of symbolic […]

Informed trading involves the act of trading securities by individuals or entities who have access to material, non-public information (MNPI), which influences market efficiency and fairness. We look into the essence, implications, and regulatory aspects of informed trading.   Key Takeaways – Informed Trading Asymmetric Information Advantage Informed traders possess superior, often non-public, information about […]

A popular paper in quantitative finance – for a period the #1 most downloaded paper on SSRN – is making the old argument for a 100% equities allocation. The argument against the notion of a 100% equity allocation for long-term investors, based on recent discussions and longstanding financial principles is articulated below.   Key Takeaways […]

Stochastic Discount Factor (SDF) models are central to financial economics, as they provide a unified framework for understanding asset pricing. These models, also known as pricing kernel models, are based on the concept that the price of an asset is the present value of its future payoffs, discounted by a stochastic process.   Key Takeaways […]

Pegged orders are a type of order used in trading that automatically adjusts its price based on certain market conditions. These orders are designed to provide traders with more strategic control over their trades, so they remain competitive in changing markets. There are various types of pegged orders, each with its unique features and applications. […]

With news events and earnings releases often taking place outside of regular trading hours, FXCM has launched 24-hour trading on US stocks. Key Takeaways Popular shares like Apple, Tesla and Uber can be traded pre-market, post-market and overnight. During extended hours, you may see a decline in trading volume, higher volatility and wider spreads. Selected […]

Event-driven strategies in financial markets are trading or investment strategies that seek to exploit pricing inefficiencies that may occur before or after a corporate event takes place. These strategies are primarily based on the premise that corporate events can lead to stocks or assets being mispriced and can provide opportunities for traders/investors to earn above-average […]

Network theory and percolation models offer a lens through which we can understand various phenomena in finance and trading. These concepts, derived from mathematics and physics, provide quantitative frameworks for the interconnectedness and vulnerabilities within financial markets. Below, we look into the key concepts, applications, and how traders can leverage network theory and percolation in […]

Random Matrix Theory (RMT) is a statistical framework used to analyze the properties of matrices with random elements. In finance and trading, RMT is useful for analyzing the structure of correlations among assets in large portfolios, which can help with understanding why assets move the way they do, risk management, and portfolio optimization.   Key […]