Behavioral Finance

Economics = Mathematics + Psychology or My Psychological New Year Wis...

I am an economist-mathematician by training. Therefore, I know that mathematical equations can describe qualitative economic relationships pretty well. That’s the...
1 min read 124

September Blues: The Role of Statistics and Psychology in Financial Ma...

September has arrived. For market participants it is not only the time to return to their offices after summer vacation, but...
3 min read 158

Eurovision, King Dollar, Bitcoin, and Other Victims of Popularity

To be honest, I have never watched the Eurovision Song Contest. For our readers living outside Europe, I can explain that...
3 min read 131

Horrible Mistake I Made by Emotional Investing

I broke the rule and ended up with financial losses. I started investing in 2017 and then I learned about this...
4 min read 263

How to Imagineer Your Dream Life with a Financial Advisor

Thinking back to the beginning of the Covid-19 pandemic in March 2020 most of us look at this highly volatile period...
7 min read 285

Using Options to Indicate Future Stock Price

A time-series analysis of underlying asset movement as a function of option trades, powered by the Facebook Prophet model. 1. Introduction...
4 min read 546

How Not to be Dumb Money, 3.0

Gamestop Meme War Marshmallow Experiment Update When fear is overpriced, sell some. Gamestop dropped 29% today to $143 and I’m smiling...
6 min read 159

Will Pokemon Cards Become the Latest Commodity Craze

Gamification, scarcity, and The Greater Fool Theory Pokemon cards have been on fire lately. While Gamestop hasn’t quite made it to...
3 min read 413

How Not To Be Dumb Money

Gamestop Meme-ified Put Option Cookie Experiment Edition 2.0 “The stock market is a device for transferring money from the impatient to...
6 min read 258

Tired of Losing to the Big Guys? Maybe You Should Write a Bot

My Plan to Enter the World of Algotrading According to Business Wire, algorithmic trading (algotrading) is responsible for around 60–73% of all U.S....
4 min read 262

9 Lessons Learned About Stock Trading During Covid-19

Best practices from a newcomer in the industry Before you skim through, let me tell you a little bit about myself....
4 min read 283

Why Most People Lose Money Day-Trading (And How to Not Be One of Them)

Day-trading is hard, and most people lose money at it. I definitely have. In fact, I once lost more money in...
7 min read