evanpw

9 ms·

31.
by evanpw 7y ago
Every time you buy a stock, someone sold it to you, so flow of money into the market isn't something that's easy to define in a meaningful way. And even if a lot of the invested capital is passive (maybe half of the US stock marke
32.
by evanpw 7y ago
I agree with your first part, but not the second. Even if there's a future where the total market has zero (or negative) return on average in the long term, it doesn't mean that it's any easier to find the temporary exception
33.
by evanpw 7y ago
The human lifespan is too short to distinguish between luck and skill for most low frequency traders. You'd have to see dozens of potential pandemics as severe as this one to know if you were "right". But it's empiricall
34.
by evanpw 7y ago
Gold is a single concentrated bet, not really comparable to a stock-market index, and the Nikkei shows why it's important to diversify outside of your home country. For almost everyone, "buy the global market portfolio and forget
35.
by evanpw 7y ago
Single-stock volatility halts happen in either direction, but market-wide circuit breakers only happen on down moves.
36.
by evanpw 7y ago
Nope, trading stops everywhere. Even Canada stops trading when the US has a market-wide halt.
37.
by evanpw 7y ago
It's not good enough to test only the people who have already passed a similar test. It's easy to get a nonsense negative correlation, like more experienced people performing worse in their job, because the people with less experi
38.
by evanpw 7y ago
You'll only pay $X for a good if it's worth at least $X to you, so in the absence of perfect price discrimination, that trade is also positive-sum: https://en.wikipedia.org/wiki/Economic_surplus#Consumer_surp.
39.
by evanpw 7y ago
Super illegal if true: https://www.finra.org/contact-finra/whistleblower
40.
by evanpw 7y ago
Losing benefits as you make more money has the same effect as being taxed on that marginal income.
41.
by evanpw 7y ago
You don't want the information. You want the order, so that you can be the other side of the trade. As long as the order arrival isn't too correlated with price movements, the market maker can buy a little above the bid price and
42.
by evanpw 7y ago
Limit orders can only execute at the limit price or better. Are you saying that you were getting better prices than you expected, or am I completely misreading this?
43.
by evanpw 7y ago
That workaround is also problematic, because move constructors are supposed to be noexcept, but 'new' can throw std::bad_alloc. So you either have to lie to the compiler and tell it that your move constructor is noexcept (maybe re
44.
by evanpw 7y ago
Electronically, in an account at the Federal Reserve
45.
by evanpw 7y ago
This argument comes up all the time, and the answer is that big-O notation is very general, and only makes sense relative to a particular computation model. For example, you may describe a sorting algorithm's complexity by counting the
46.
by evanpw 7y ago
Yep. There's a good Cliff Asness post on this: https://www.aqr.com/Insights/Perspectives/Virtue-is-its-Own-... . Increasing expected return for sin stocks is exactly what you want if you're serious about
47.
by evanpw 7y ago
It's configurable. The default parser is written in C, but it's possible to use a parser based on the csv module if you needs things like separators specified by a regex.
48.
by evanpw 7y ago
They won't loan you more than X% of the appraised value, but you can make that up with the down payment (or pay the whole thing in cash, as you say).
49.
by evanpw 7y ago
slatestarcodex had a take on this recently: https://slatestarcodex.com/2019/11/06/building-intuitions-on...
50.
by evanpw 7y ago
The progressive / regressive terminology takes it for granted that income is the right denominator to measure against, rather than consumption, which is not obvious in my opinion.
51.
by evanpw 7y ago
Probably a preference for non-finance fields of study. Might be different at hedge funds doing longer-term trading, but at the short end, academic finance is very far from anything being done in practice.
52.
by evanpw 7y ago
Yes, virtually all trades have to be reported.
53.
by evanpw 7y ago
Yes, they do, though it doesn't list the specific internalizer. It looks the same as any dark-pool trade.
54.
by evanpw 7y ago
Market makers sell liquidity, and the spread is the price they sell it at, so they'd prefer to sell at a higher price (larger spread). The reason that spreads tighten is competition: there are a few wholesale market makers, and the bro
55.
by evanpw 7y ago
(I'm a quant at a trading firm) On the quant side, the somewhat unfortunate answer is "get a STEM PhD". My firm is always looking to hire quants who are also good (Python / C++) developers, but you'll probably not g
56.
by evanpw 7y ago
A marketable limit order is strictly better: "I'll sell at the best price available, but no more than X% worse than the current price" vs. "I'll sell at literally any price". In most cases, they give identical
57.
by evanpw 8y ago
> farming? from some statement I read somewhere 'yield' was the problem bond yields in finance
58.
by evanpw 8y ago
That’s a tax deduction. A tax credit of $X really is $X off your taxes owed.
59.
by evanpw 8y ago
The tick size for stocks less than $1 is $0.0001.
60.
by evanpw 8y ago
If Apple and Amazon are lying, they're committing securities fraud.

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