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(2012 07-19 stock-trading_for_programmers) 30 minute talk at MyCocoaheads Klang Valley
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2012-07-19 MYCocoaHeads Klang Valley July meet-upBy HwaYang Jerng. 7:15-7:45pm: Stock Trading
Hi!
The audience (you) as I understand it:- you write code- particularly, iOS code
The Brief from Chris: talk about stock trading.
Why? Probably because I blab a lot on Facebook.(Having no real friends; tend to use it as a blogging / clubbing platform).
I’m currently a student. At home, all alone, figuring out computational finance.
My tool chain (developers love stacks):
2012-07-19 MYCocoaHeads Klang Valley July meet-upBy HwaYang Jerng. 7:15-7:45pm: Stock Trading
Quantitative research
Qualitative research
Micro-economic info
Macro-economic info
Intuitive research (follow your nose / common-sense approach)
Google Spreadsheets + Apps Script + “Live” Data from Yahoo
Number Crunching
Dashboards
Going to be replaced by localhost (faster)
• Erlang (because I want to learn Erlang)
• R (because I want to learn R)
Maybank Trading Terminal
by Excel Force MSC Berhad
• (apparently)
Better data
• Alternatively you can pay for live data
Work Desk
Anxious drumming of fingers
Customary head banging
Entities of Value
Tangible
Natural
RealestateProduce
Cars
MeatMetal
Energy
Synthetic
Money
Derivatives of money
Untangible
LoveTaste
FashionHoliness
2012-07-19 MYCocoaHeads Klang Valley July meet-upBy HwaYang Jerng. 7:15-7:45pm: Stock Trading
Asset Classes (only some) (flat list) (obviously a lie, I hope):
10,000 ways to fold it
2012-07-19 MYCocoaHeads Klang Valley July meet-upBy HwaYang Jerng. 7:15-7:45pm: Stock Trading
Asset Classes (how they fit together, when you first start looking):
They Don’t!Suckers…
Stocks Property Rights
• Little bits of real live businesses!
• VALUE UP when
• Consumers have too much money to spend
• Consumers are brave enough to spend
• VALUE DOWN when
• Money no enough
• Pandemic kiasism
• Side note:
• Governments & businesses:
• remoras / proxy spenders;
• consumers remain at bottom of foodchain“if C dies, B dies, & G dies”
• Junior “Rights”
Bonds Loans
• (Anthropomorphism)
• Bored money.
• Goes out to play.
• Expected to return with growth.
• Sometimes does not come home.
• Once past curfew, generally assumed to be deadgone.
• VALUED ON
• Certainty of underlying cash flows.
• Alternative play grounds.
• Yields are inverse to value
• Senior “Rights”
Crops
• Food, basically.
• Also used for manufacturing non-foodstuff.
Minerals (we require more)
• Mostly used for manufacturing.
• Sometimes valued just because they are shiny (due to legacy code in majority of installed operating systems).
2012-07-19 MYCocoaHeads Klang Valley July meet-upBy HwaYang Jerng. 7:15-7:45pm: Stock Trading
Asset Classes (if you don’t give up):
companies
Important Concepts
Money Supply
P/E(uphoria) Ratios
Political Rhetoric
Headlines
Efficient Markets
Hypothesis
Cash flow==
Confidence