intro to stock trading for programmers

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):


Google

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


Asset Classes (only some) (flat list) (obviously a lie, I hope):

10,000 ways to fold it


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).


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

intro to stock trading for programmers

Economy & Finance