Speculative trading, often termed a zero-sum game, involves market dynamics where one trader’s profit is matched by another’s loss. This balance is evident in futures, options, and derivatives markets.
Absorption in trading is a process where large buy or sell orders are integrated into the market without significant price changes. By understanding this phenomenon, traders can better identify key support and resistance levels, make informed decisions, and develop effective trading strategies.
Unnecessary mystification in financial trading can lead to feelings of inadequacy among traders. By elucidating the intricacies of trading, individuals can take control of their investments, avoid fraud, and establish a robust foundation for financial success.
This article delves into quantitative trading, exploring its strategies, necessary infrastructure, and the crucial role of continuous research. It also contrasts quantitative trading with discretionary trading, highlighting the advantages and challenges of each approach.
