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Category Archives: Statistics for Stock Stooges and Other Market Math

Three types of people

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Market Science, Psychology, and Psychosis

Learning from our mistakes? Flies can do it. Lots of Animals Learn, but Smarter Isn’t Better
It takes just 15 generations under these conditions for the flies to become genetically programmed to learn better. At the beginning of the experiment, the flies take many hours to learn the difference between the normal and quinine-spiked [...]

Wanna be a Winning Trader?

All you gotta do is wear a red shirt!
Using data from the last 55 years, researchers at Plymouth and Durham universities in England found that teams with red kits were significantly more successful. The results are detailed in the Journal of Sports Sciences.
Previous research has shown that red uniforms confer an advantage to Olympic combatants [...]

Trader Testosterone Study

The actual study is locked up in the vaults of academia, but here’s a few links.
Testosterone Levels Predict City Traders’ Profitability – Science Daily Stock Market Winners Get Big Payoff–In Testosterone – Scientific American Study: Testosterone Fuels Stock-Market Success – Fox News
Since few reporters and bloggers have actually been [...]

Statistical Trading: When to do nothing

The Statistical Modeling, Causal Inference, and Social Science blog talks about great actors and actresses who always seem to play parts beneath their talents. Similarly, one can dredge up a plethora of companies that make great products and offer excellent services whose stocks fair poorly.
Perhaps the answer is simply poor timing. An actor can only [...]