February 2019 - Page 49 of 281 - Financial Occultist

I”ll confess to being mostly skeptical about these quasi-deterministic genetic trait studies — circumstances generally matter so much more — but there is a new study claiming a genetic basis for some aspects of decision-making in risky situations.

Research published today in the Proceedings of the Royal Society B1 is a step towards a more nuanced understanding of how variants of the gene MAOA — which specifies an enzyme, monoamine oxidase-A, that breaks down neurotransmitters such as serotonin — affect financial decisions.
The gene variant MAOA-L is associated with lower production of the enzyme and has been repeatedly linked to risky behavior. Previous studies suggested that carriers of MAOA-L are more likely to lash out when provoked2, for example, or to be more prone to aggression when raised in high-stress environments3.

More here, including a summary of the research, which appears to have been the usual test of a sure versus a gamble for higher gains.

Lessons for Stock and Options Traders

13-Feb-19 04:03 am

Education

Anirudh Sethi

lessons Now, you ask, what does this have to do with stock and options trading? Just as in every day life and in the case of CFIT, stock and options traders must remain focused on the current trade or risk opening themselves up to any number of mistakes. These mistakes can include (but are in no way limited to)the following:
1) allowing impulsiveness to take over your trading rules, thus taking a trade that does not meet your criteria
2) not taking a trade signaled by your system because your focus is elsewhere (more…)

Hidden Divergence

13-Feb-19 04:02 am

Education

Anirudh Sethi

Just as classic divergence does not appear on every price chart, so it is with hidden divergence. But when they do appear, they are worthy of attention. The trick is to train your eye to recognize one when it presents itself.

Stock trading wisdom from Nicolas Darvas

13-Feb-19 03:55 am

Education

Anirudh Sethi

Plan For Today

13-Feb-19 03:48 am

Education

Anirudh Sethi

Timeless Trend Trading Wisdom

13-Feb-19 03:43 am

Education

Anirudh Sethi

In the 1954 work ‘New Blueprints for Gains in Stocks and Grains’ William Dunnigan stated:

“We think that “forecasting” should be thought of in the light of measuring the direction of today’s trend and then turning to the Law of Inertia (momentum) for assurance that probabilities favor the continuation of that trend for an unknown period of time into the future. This is trend following, and it does not require us to don the garment of the mystic and look into the crystal balls of the future…Let us believe that it is possible to profit through economic changes by following today’s trend, as it is revealed statistically day-by-day, week-by-week, or month-by-month. In doing this we should entertain no preconceived notions as to whether business is going to boom or bust, or whether the Dow-Jones Industrial Average is going to 500 or 50. We will merely chart our course and steer our ship in the direction of the prevailing wind. When the economic weather changes, we will change our course with it and will not try to forecast the future time or place at which the wind will change.”