Archives of “January 8, 2019” day

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WallStreet Movies and S&P 500 :Great Correlation

  
Analysis, Education
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WALLSTREET AND MOVIES AND SPX

If you had gotten out of the market when these movies were released, you’d definitely have missed some big moves…to the upside.  Wall Street came out after the crash of ’87 in December 1987, and taking money off the table for the multi-year bull market that followed would have been a big miss.  Boiler Room came out just a month before the peak in 2000, so in this case it was a good sell signal.  

The sequel to the original Wall Street, Money Never Sleeps came out during a leg down in the current bull market in 2010, and its placement in the upper chart is a bit misleading.  Yes, filming for the movie began in late 2009, but the market bottomed in early 2009.  Whether you use the dates they began filming or the release date, Money Never Sleeps did not coincide with a peak for the equity market, and in retrospect was a great time to get in.  As for the Wolf of Wall Street?  Only time will tell, but keep in mind that unlike the other movies, it is not intended to be set in present day, instead romanticizing the heady days of the 1990s. (more…)

OVERCONFIDENCE

  
  Education
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It is common for traders to complain of a lack of confidence in their trading, but very often it is overconfidence that does them in. Overconfidence results from a lack of appreciation of the complexity of markets and an underestimation of the challenges of trading them successfully. In a sense, overconfident traders lack respect for the markets. They think that reading about a few setups or buying the newest software will prepare them to make money. Overconfident traders don’t want to work their way up the trading ladder: they resist the idea that screen time is the best teacher. They also chafe at the idea of growing their account. Rather than start with one contract and wait until they’re profitable before trading larger size, they want big positions—and profits—right away. Because they’re so eager to make money—and so sure they can make it—overconfident traders generally trade impulsively. They won’t wait for the setup to form; they’ll jump the gun—and get whipsawed in the process. Instead of being patient and waiting for short-term patterns to align with longer-term patterns, they will take every trade, enriching their brokers in the process. (more…)

No More Fingers! 'Brainprints' to Be the Passwords of the Future

  
Analysis, Education
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BrainPeople can be accurately identified by their unique brain wave pattern, a new study has revealed.

A team at Binghamton University found that each of us has a personal “brainprint” that can be detected with particular techniques. In an experiment reported in the journal IEEE Transactions on Information Forensics and Security, the researchers, led by Dr Sarah Laszlo, explained how they selected 50 volunteers and showed them various images. 

These included photos of “a slice of pizza, a boat, Anne Hathaway, [and] the word ‘conundrum,’ ” the paper explains. As each subject looked at the images, an electroencephalogram (EEG) machine was picking up the way their brain behaved. 

The scientists found that each participant’s brain reacted in a different and specific way to the images shown. Building on that, the researchers managed to developed an algorithm which was able to match every person with their “brainprint” with high accuracy.

According to Laszlo and her colleagues, “brainprints” could become the passwords of the future. One could first be plugged to the EEG machine to record his or her particular “brainprint” as they look at some specific image, effectively setting a “brain pin code.” Then, every time that person sees that given image again, another EEG machine would cross-reference its brainwaves with a vast database to confirm their identity beyond any doubt. (more…)

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