Category: Traders’ Secrets


Traders’ Secrets is something that everyone would like to know, right?
How is it possible that some traders are successful all the time while others fail to make a profit all the time?
That is exactly what Traders’ Secrets will show you.
Traders-Paradise’s team reveal all trading and investing secrets to you, our visitors.

What will you find here?

How to find, buy, trade stocks, currencies, cryptos. You’ll find here what are the best strategies you can use, all with full explanation and examples.
Traders-Paradise gives you, our readers, this unique chance to uncover and fully understand everything and anything about trading and investing. The material presented here is originated from the experience of many executed trades, many mistakes made by traders and investors but written on the way that teaches you how to avoid these mistakes.

Moreover, here you’ll find some rare techniques and strategies that are successful forever, for any market condition. Also, how to trade with a little money and gain consistent returns. By following these posts you’ll e able to trade with greater success. You’ll increase your profits and your wealth, of course.

The main secret of Traders’ Secrets is that there shouldn’t be any secret for traders and investors. Rise up your trade by reading these posts, articles, and analyses!

You’ll enjoy every word written here. Moreover, after all, your trading and investing knowledge will be more extensive and effective.

Traders’ Secrets will arm you with those skills, so you’ll never have a losing trade again.

  • The Worst Investor of All Time

    The Worst Investor of All Time

    The worst investor of all timeThere is no such thing – worst investors. Yes? No? Read to the end.

    By Gorica Gligorijevic

    The stories about the most successful investors are well-known.

    Okay! Not all and not everything.

    But have you ever heard about the worst investors? Yes, you probably heard about less successful and about great losses.

    But out there, in the markets, is one man who did everything wrong.

    Yes, he had a great passion for investing, markets, and, most of everything, desire to earn wealth. Moreover, he was on the right path. But he did things at the wrong time.  We ran into this tale randomly and was fascinated with this example.

    The name of that investor is Bob.

    Actually, he is the worst market timer ever. The worst investor of all time.

    And lets the story began. Bob started investing in 1970 when he was 22. He planned to save $2,000 per year and increase his savings for $2,000 every next year. So, his plan was to hit that amount and retire at age 65. It should be in 2013.

    In 1972, he had $6,00 savings on his bank account and was ready to make his first investment.

    He invested in the S&P 500. Just before the market crash for the S&P 500 for almost 50%. He put all his money at the peak of the market. And we all know that after the peak follows drop.

    Bob didn’t sell his stocks. He held them tight.

    Why?

    Maybe he was expecting them to grow again or he was confused or nervous. Every scenario is possible. This decision caused his later destiny.

    His case is the best example of the Greater Fool Theory.

    Behind the Greater Fool Theory is an idea to neglect the fundamental analysis of asset values. The main hope is to sell your stocks at a higher price to some other greater fool. Bob, the worst investor of all time, held shares in small tech company Wind River. He earned some money, not a small one, the real money.

    And the 90s came.

    Bob made his second mistake.

    He bought the Iomega stocks at its precise peak. At the moment when their share price was on the maximum. It looks like Bob liked high-tech. Or he had confidence in new technologies. You have to admit that his predictions were good but the timing was wrong.

    The tech bubble really went up at the end of 1999. Bob had $68,000 of savings to invest. And he bought, just before a 50% or more market downturn that lasted until 2002.

    This the worst investor of all time somehow made losses on Facebook 2012. He bought into the IPO and sold these stocks because he noticed that they are climbing down. If he was patient for only one year his investment would be bigger for 40%. That was the difference between the price he bought Facebook shares and price in 2013.  

    This the worst investor lost money on Tesla also.

    Tesla was up to almost 600% after Bob sold. Following his own loser’s pattern, Bob made another wrong decision. When the stock market crashed in 2008 and interest rates dropped to null, he recognized dividends as a 100-percent sure plan to make a profit.

    Bob bought Star Bulk Carriers Corp. The dividend yield was 10 %.

    He was defeated.

    Dry bulk shippers had been hit hard. They lost 95% of its value in a frame time of 8 months. Theoretically, it was expected that Star Bulk should have a steady cash flow. But one of the company’s customers declared bankruptcy. Star Bulk gave the shareholders some cash to hold them satisfied. Actually, they got half of the dividend.

    It was not the end.

    Bob tried to trade the ETFs in March 2009.

    He bought the Direxion Daily Financial Bear 3X Shares. Exactly at the time that stock prices were on their way to hit the bottom. He lost a fortune.

    He bought China Mobile in 2007.

    Bob read a hopeful report about the increasing amount of Chinese cell phone users. Of course, the price fell the day after his purchase. His worst mistake when he moved most of his 401(k) into cash 2014.  But this story has a happy end. Bob ended up a millionaire with $1.1 million.

    How is it possible?

    Bob planned out his savings. He never paused on his savings goals.

    Anyway, Bob was the worst investor of all time.

     

  • Get rich – several steps to reach this goal

    Get rich – several steps to reach this goal

    3 min read

    Get rich - several steps to reach this goal

    If financial freedom is in your focus you must have the desire to get rich. Probably a strong one.

    To get rich isn’t a pleasant job nor easy. You must have some habits besides natural predisposition or personal desire.  

    You must have the willingness to win, to climb to the top.

    Self-confidence is one of the most important and basic characteristics. But you can also, develop your habits to bring you to the point when you are wealthy.

    You have to be determined enough to do all the wise things which lead you to grow your wealth. And, maybe, retire soon.

    No one became rich accidentally.

    To build your wealth you must have a long-term concept.

    You have to be ready to understand the prize of financial freedom.

    It will cost you now but later, it will give you a lot of pleasure. Or, building wealth and making money may become your only and final goal.

    Why not? It sounds so sexy!

    So, what you have to do in order to get rich?

    First of all, invest early.

    The early bird catches the worm!

    Start now!

    If you put your money to work ASAP you will give it the chance to grow over time.

    C’mon! We can hear that. No, we are not talking BS.

    Do you have the opportunity to check data of the stock market for the past decades? Yes, you could do it and after say we are talking BS.

    Say you’re in the 20s.

    You might have, for example, $500 per month to invest in some low-cost index fund.

    How much money you will have at your 60s?

    Over a million! Not bad.

    You can be a millionaire if you invest just a few thousand dollars every year.

    This isn’t a fairy tale. This is the reality. And might be yours.

    The tricky part is, if you start 10 years later you would gain under $200,000 if you invest $10,000.

    So, start right now!

    Saving and investing money now is more beneficial. You don’t have to wait.

    Get rich - several steps to reach this goal 1

    Further…

    Automate your savings.

    Set up an auto deduction from your paycheck. On this way, you’ll be able to bypass risky paths that could lead you to spend your savings.

    It’s so simple to delay and ignore what requires to be made.

    For instance, to spend more than you have to.

    Get rich - several steps to reach this goal 2

    If you automate your savings, you are on the best path to get rich. Being a human we have amazingly poor willpower.
    Automating your finances ruins this by letting you save money without having to do it yourself.

    Practice intelligent spending like a rich person

    Yes, you should spend your money on the stuff that makes you happy.

    Just do so with purpose, and avoid the foolish spending. That can lead you to messy finances.

    When you spend your money, you just have to have a plan. Your travels, trendy clothes, or going to the restaurants, should be planed.

    No one asks you to sacrifice yourself for the sake to get rich.

    You have this one life and the point is to live it with pleasure. This life has no rehearsal or repetitions.  

    Just try to be smart and provide to yourself a bright future.  

    Further…

    Maximize your retirement account contributions.

    A small contribution is better than none, that the truth.

    But a small force can span too small effects.

    If you want to get rich, you have to maximize the rate allowed from the beginning.

    This is primarily valid if you are beginning to accumulate your wealth later in life. Don’t be afraid, that will not screw out your cash flow.

    We think it’s much difficult to balance the budget year after year to support the increasing contributions.

    So, maximize it from the start.

    And that revolving!

    Why do you need that high-interest debt?

    It can dangerously pull you down, and block you to save more.

    If you really want to get rich you have to remove the bad habits.

    Never ever take credit card balances!

    Get rich - several steps to reach this goal 3

    The better choice is to learn how to handle credit effectively.

    You have to pay your balance completely each month.

    There are some methods to maximize rewards, points, etc. Some card owners know them, but the majority never reach those highs.

    Live in harmony with your own system and you will find a key to a successful result.

    Have you ever faced someone who is modest and then you were shocked when heard that they are swimming in money?

    When you heard that such person is an extremely prosperous entrepreneur and multimillionaire.

    Well, millionaires live below their averages. They gather their money,  they are not showcasing it.

    Say, the habit of spending less now can help you have a bunch later.

    Don’t forget, less is more! One day.

    Further…

    Or how to become an investor and get rich

    Victorious investors know all pros and cons. That will take time but if you want to be like George Soros or Warren Buffet, you must have a good education. Also, you have to be well informed.

    You will never find sufficient information in some yellow magazine or on Twitter.

    Grow as a loyal follower of money, and you can learn of getting rich.

    Advanced investors would never put all of their eggs in one basket. So, diversify your portfolio.

    Spread your investment over a mixture of investments. From stocks to startups. That will protect you from financial waste if one of your investments drop.

    Just be cautious not to store your money too massively in one investment.

    And find pros you trust. That will cost you some money, but you have to spend some money to make money.

    When you get rich, don’t forget us and our good ideas we shared with you.

    Lucky investing!

    risk disclosure

  • John Bogle – Proud He Was a Billionaire

    John Bogle – Proud He Was a Billionaire

    John C. Bogle - Proud he was a billionaireWho was John Bogle?

    By Guy Avtalyon

    John C. Bogle, also is known as Jack, was born  May 8, 1929, in Montclair, New Jersey. Also, known as one of the Bogle Boys. He had twin brother David Caldwell and older brother William Yates III called Bud. John Bogle studied at Princeton University and in 1951 got a degree in economics. But he didn’t stop his education road. He attended evening and weekend courses at the University of Pennsylvania.

    After graduating his main interests were banking and investments. Bogle got a job at Wellington Fund. He worked in administration, marketing and distribution, securities analysis, and shareholder relations. Thanks to his knowledge he climbed very fast in the company’s hierarchy. He became an assistant manager in 1955.

    That was a wonderful opportunity for such an analytical mind. He got full access to examine the company and the investment activity. He was ambitious. John Bogle had the initiative. He wanted more and better. Jack Bogle wanted a new fund. And finally, Wellington management changed its strategy of focusing on a single fund. That was Bogle’s first victory and the turning point in his work.

    In 1964, by age 35, John Bogle became a CEO, and six years later a chairman of Wellington in 1970. He managed this company with a strong hand. Also, many of his associates claimed that he was rigid.  What was all that about?

    Bogle insisted the firm diversify its product list in 1958 with the introduction of the all-equity Windsor Fund. He was an innovator. The other innovations followed this one.

    But be patient, this is a tale about one of the most brilliant minds among investors.  He made a revolution creating the world’s first index mutual fund in 1975. Also, this man changed investing eternally with index funds. He invented the index fund as a form for retail investors in order to provide them to be able to participate in the market with the professionals.

    What did John Bogle uncover?

    John Bogle uncovered a system for retail investors to approach the market but at a much cheaper cost than the mutual fund. And, you know, if you want something to be done and have a vision and you know that other people can’t see the same goals as you, and you know that they are wrong or tiny-minded, you must be rigid. Especially if you want to succeed. That’s how John Bogle became the titan of low-cost investing.

    Bogle was strongly competing from his early days. His battle-fields were all, tennis yards (what a strong drop shot he had) or crossword puzzles or business and markets. His habit was to complete crosswords from the New York Times in ink and later compared his time needed to finish to his children and brothers.

    That is a competitive temper! But we have to stay on the course! Bogle’s career had ups and downs. Not a lot of downs, but important to be mentioned. So, the asset management wonder-man made a crucial slip. He approved merger Wellington with Thorndike, Doran, Paine & Lewis. It was an offensive mutual fund company from Boston. Institutional Investor magazine named this new energetic crew of five young managers “The Whiz Kids.”

    In 1974, the bull run was over. The bear market of 1973-74 led to bad achievement for Wellington’s funds. The merger was characterized as extremely unwise and was approved by Bogle himself. It caused conflicts between the associates.

    John Bogle was fired from Wellington.

    Later, he rated it as his biggest mistake, stating, “The great thing about that mistake, which was shameful and inexcusable and a reflection of immaturity and confidence beyond what the facts justified, was that I learned a lot.”  Also, he called it “the most heartbreaking moment” of his career.

    He was 44, six children. Bogle was out of a job and sick, he had a weak heart. The doctors had told him he had a few years living and advised him to retire to the seaside. He didn’t accept that. But still, he was chairman of 11 Wellington’s funds and he used them to build Vanguard, a new branch concentrated on Wellington fund management.

    Bogle offered a new mutual company.

    When did The Vanguard Group start?

    The Vanguard Group started services on May 1, 1975. With $1.8 billion in assets and staff of less than 50. Bogle gave this name to the new mutual company in memory to Lord Nelson’s flagship and the famous British victory against Napoleon’s fleet at the Battle of the Nile in 1798.

    Bogle later said he “wanted to send a message … that our Vanguard would be, as the dictionary says, ‘the leader in a new trend.’ “

    “Our challenge at the time,” Mr. Bogle evoked, “was to build, out of the ashes of major corporate conflict, a new and better way of running a mutual fund complex. ‘The Vanguard Experiment’ was designed to prove that mutual funds could operate independently, and do so in a manner that would directly benefit their shareholders.”

    When the first retail index fund was created?

    It was 1976 when the first retail index fund was created. Very soon, it bought every stock in the S&P 500 index and established the market’s average return. The result was totally sales droop. Only a small number of investors wanted a guaranteed average.  Everyone like highs. Big returns, great profits!

    Bogle had a lot of critics. It took time for the strategy to be adopted and recognized as a revolutionary type of investing.  For the past 5 decades, academics have been discussing the “Efficient Market Hypothesis.” In its most radical mode, EMH states that you might select stocks with a dartboard because they are reasonably priced.

    Wall Street responded with what they call “pockets of inefficiency.” Bogle, intelligently, gave up the discussion. His point was that you don’t have to believe the EMH. You just can see things his way, he said.

    Bogle believed in what he called the CMH: the Cost Matters Hypothesis. To beat the market you need money.

    Vanguard’s first index fund was taunted as an “a sure path to mediocrity,” according to the firm. The index fund makes up 70% of Vanguard’s $5.1 trillion in assets today. He was a great proponent of the mutual fund as an investment vehicle,  but at the same time, Bogle was the mutual fund industry’s severe critic.

    What did John Bogle criticize?

    John Bogle criticized high costs, dishonest advertising, and product conception during his whole career. His radical ideas secured him a reputation as “the conscience of the industry.”

    “If a statue is ever erected to honor the person who has done the most for American investors, the hands-down choice should be Jack Bogle,” said Warren Buffett.

    Bogle hadn’t been delighted with the form the market adopted his idea. After Bogle’s death on January 2019, Jeff Cox wrote for CNBC:

    “When he put together the First Index Investment Trust, it was a mutual fund, which prices at the end of the day and cannot be traded during normal market hours. What has happened to passive investing since has been quite a big difference.” Almost half of the passive field is filled by ETFs now.

    They offer lower fees than most mutual funds. Investors are able to trade them through the day. That ability makes them subject to the impulses of the market’s liquidity matters.

    John Bogle didn’t like that concept

    He hated it so much that he called people who deal in ETFs “fruitcakes, nut cases and the lunatic fringe.” Bogle wanted to explain his opinion about this issue in his final book, “Stay the Course, The Story of Vanguard and the Index Revolution” (Wiley, 2018).

    He claimed that ETFs are principally the sphere of speculators with  the “rapid trading” in ETFs “done by financial institutions that use them to hedge or equitize cash reserves.” “The arithmetic suggests that only about one-sixth of ETF assets are held by investors with a focus largely on the long-term,” Bogle wrote in his book.

    Well, his conclusion at the end of that chapter in the book is that he can support the funds as long as they are wide-based and not used for speculation.

    Bogle as a public speaker

    Jack Bogle was a pleasant and internationally desired speaker. He would spend hours writing and rewriting his notes. His speeches to the Vanguard crew were legendary. You can read them in his book “Character Counts: The Creation and Building of The Vanguard Group.”

    Also, he was a philanthropist, from organ donation to the National Constitution Center. With his brothers, he established “Bogle Brothers Scholarships” at their former college they also attended Blair Academy and Princeton University.

    Bogle was a frequent commentator on the financial markets for media, giving advice to individual investors. He wrote 12 books. His best-selling is Bogle on Mutual Funds (1994). About this book, Warren Buffett said it is “the definitive book on mutual funds.”

    His last book “Stay the Course: The Story of Vanguard and the Index Revolution” was published in 2018. Bogle suffered many heart attacks. He had a heart transplant on February 21, 1996. Eight weeks later, he was back at work in his Valley Forge office and received a Fund Leader of the Year award.

    Incredible and fascinating story, don’t you think! It is impressive how he managed to stay alone with his ideas while everyone was against him. Even his health. But Bogle had self-confidence and strongly believing in his ideas.

    That power, that strength to continue despite the opponents, to create something completely new is impressive. He was a real revolutionary.

    You have to admire it.

  • George Soros – The Man Who Broke the Bank of England

    George Soros – The Man Who Broke the Bank of England

    5 min read

    George Soros - The Man Who Broke the Bank of England

    This is a story about surviving, great success and philanthropy.

    George Soros was born as Gyorgy Schwartz in Budapest, Hungary, on August 12, 1930.

    His parents were Tividar and Erzebat Schwartz.

    With increasing anti-Semitism, the danger for Jewish arose. To avoid Nazi persecution, George’s father changed the family

    name to Soros. George was just a teenage boy in 1944 when survived Nazi aggression and occupation of Hungary.  

    History would never be the same if he didn’t.

    The different danger shaped their lives after the end of WWII. Communist domination in Hungary managing by the Soviet Union (USSR). Having the fact that they were cruel with their own citizens, made Hungarians frightened for their lives.

    George Soros decided to emigrate.

    In 1947 he went to England and began to study philosophy at the London School of Economics under Karl Popper.

    Today we can say that Karl Popper’s “The Open Society and Its Enemies” had a great influence on him. In this philosophical masterpiece, Popper criticizes totalitarianism.

    The basic idea is that no ideology controls the truth and society can grow only when it is free and open. The main lesson is that respect for individual rights can maintain such a society. Soros was attracted by Popper’s biography and the fact that this book was written during WWII.

    Popper was not only a philosopher but also a journalist. While working as a war reporter he started thinking how could Adolf Hitler and national-socialism happen at all.

    Popper started writing Open society in order to analyze the history of political ideas and to find an answer to the question above. The whole book was written before the end of WWII.

    But Soros never became a philosopher. Actually, he is the greatest philosopher among investors or the greatest investor among philosophers.

    Instead, he entered the London merchant bank Singer & Friedlander.

    Soros’s first investment

    Soros graduated in 1952. Four years later he bought a ticket and sailed to America. He got a job at Wall Street brokerage “F.M. Mayer”.

    At first, he worked as an analyst of European securities. Soros, being excellent educated and intelligent, rapidly made success.

    George Soros - The Man Who Broke the Bank of England 1

    He changed firms in the following years and finally decided to start his own business. In 1970 Soros founded his own hedge fund with $12 from investors. The first name was the Soros Fund Management but later he changed at Quantum Fund and the Quantum Fund Endowment.

    The rest is history. George Soros became one of the most successful investors in the history of the US.

    But we will give you more details because he is an extraordinary man.

    He is one of the rare individuals whose example is worth to follow.

    The man who broke the bank of England

    George Soros grew to one of the most recognized currency traders, thanks to his brilliant bet placed against the Bank of England in 1992. He entered history.

    That event is well-known as Black Wednesday.

    His bet was that the British Pound price would fall in value.

    But let’s start from the very beginning.

    In that time, the early 1990s.

    It’s essential to explain the political background of Europe at that time. Europe was in the middle of preparation for something today known as the European Union. Their first aim was to set a unique monetary system and monetary stability. They wanted to put Euro on the stage later. The money which will be unique to all member countries.

    But, at that time Europe has a combination of different currencies inside the ERM (European Exchange Rate Mechanism). The monetary union was one of the first steps which led to the European Union.

    Not all would like this. Some of the countries that geographically belongs to Europe never entered the Union because of domestic coins. They were assured that such a movement would have consequences for their countries economy.

    There were a lot of debates inside their parliaments about that issue.

    The British government wasn’t an exception.

    George Soros was a big investor in that time. He had a lot of experience and success too.

    Of course, he was well informed about all the news in the market and politics.

    And what Soros did?

    The economic conditions assure him that the best move on the market to build a short position on Pound Sterling. He was working on it up to September of 1992.

    At that time the UK government noticed that the value of Pound Sterling is climbing down and they decided to reverse it from the ERM  in order to keep their national currency value.

    And that was a fantastic opportunity for investors like Soros. The great advantage.

    Thanks to his short position in the currency trading Soros short sold more than $10 billion calculated in pounds.

    Taking this move alone brought billions of dollars to Soros.

    More details

    The UK agreed to connect the British Pound to German Deutschmark.

    The value of 2.78-pound sterling was equal to 3.13 Deutschmarks. But the UK was kicked by the economic recession.

    The normal reaction would be to lower interest rates in order to support the national economy. But there is the trick.

    Lower interest rates have a negative influence on the currency value, so they wouldn’t be able to maintain pound’s value against the Deutschmark.

    The biggest dilemma was: should the UK government try to recover domestic economic growth or enter the ERM. They choose ERM.

    The Bank of England made such a big mistake, it raised interest rates. At the same time, they started to use foreign currency reserves to buy the Pound.

    That gesture opened the space for short selling. Investors, Soros first of all, recognized that the UK is in the middle of economic depression.

    George Soros - The Man Who Broke the Bank of England 2

    Over two years period, the U.K. proceeded to defend its currency. Those cost billions. They were building a house of cards actually.

    In August 1992 the German Bundesbank got the idea that currencies in the ERM could be revalued.

    The president of Bundesbank at that time was Helmut Schlesinger.

    He was prepared to make a big move. He was ready for a devaluation.

    The Bundesbank explored the possibility to set a new lower fixed rate with respect to a foreign reference currency.
    That totally changed the risk/reward to a short Pound position.

    The Pound would be weaker in any possible scenario. If pound didn’t devalue or if it did. Of course, if it declines it would be by large volume.

    At that very moment, Soros told his top trader, “Go for the jugular.”

    Soros’s fund, which was building several months, sold $10 billion

    Soros’ fund sold $10 billion value of Pounds short.

    The pressure on the Bank of England came from other investors. Everyone wanted to sell the pound.

    Then the Bank of England made new mistakes.

    First, they tried to raise interest rates by 2%. On first glance, it is a logical reaction that should lead to currencies appreciation. But this decision didn’t generate the Pound’s rally. Then they raised interest rates by 3% more on the same day. Well, they hit further selling Pounds.

    Nothing helped. At the evening of the same day,  about 7:30 the Bank of England stated that Britain would leave the ERM. That meant that the currency on the market. It was their last attempt to save the Pound.

    But Pound promptly fell 15% against the Deutschmark and 25% against USD.

    And the star was born. Soros become a trading legend. In the next five years, his net worth was $23 billion thanks a lot to this short selling.

    The UK decision made Soros richer by more than a billion pounds.

    And won the name “The man who broke the Bank of England”.

    Black Wednesday is universally known as the day that George Soros broke the Bank of England and made over $1 billion.

    George Soros and Philanthropy

    George Soros began his philanthropic activity in 1979, and he established the Open Society Foundations in 1984.

    “When I had made more money than I needed for myself and my family, I set up a foundation to promote the values and principles of a free and open society. ”

    The scholarships given to black South Africans under apartheid 1979, was the beginning of Soros philanthropy.

    During the 1980s, he supported the development of the open exchange of ideas in Communist Hungary. Soros was financing educational visits to the West and supporting other actions.

    He founded the Central European University to encourage critical thinking after the Berlin Wall fell.

    George Soros established the Open Society Foundations in 1984.

    When the Cold War was over, he constantly spread his philanthropy to the United States, Africa, Latin America, and Asia.

    “George Soros is the only American who rivals the great philanthropists of the 1890s, John D. Rockefeller, Andrew Carnegie, and Julius Rosenwald,” said Nelson Aldrich Jr., editor of The American Benefactor, in a 1996 New York Times profile of Soros.
    He supported efforts to create more responsible, open, and democratic countries.

    George Soros - The Man Who Broke the Bank of England 3

    He criticized the war on drugs as “arguably more harmful than the drug problem itself,” and also, helped to start America’s medical marijuana movement.

    Soros is a supporter of same-sex marriage efforts. The Open Society Foundations are against discrimination lesbian, gay, bisexual, transgender, and intersex communities. It promotes and defends human rights.

    Soros supports autonomous groups and organizations such as Global Witness, the International Crisis Group, the Institute for New Economic Thinking, the European Council on Foreign Relations.

    Since 1984 Soros gave to the different humanitarian organizations and through his foundations more than $30 billion of his fortune.

    We have to say that thanks to Soros’s engagement,  personal and through his organizations, many very important issues on the field of human rights are not only opened, but they are also solved or close to be. Whenever.

    “I’m not doing my philanthropic work, out of any kind of guilt, or any need to create good public relations. I’m doing it because I can afford to do it, and I believe in it. ” – said, George Soros.

    Don’t waste your money!
    risk disclosure

  • Warren Buffett – Oracle of Omaha

    Warren Buffett – Oracle of Omaha

    4 min read

    Warren Buffett - Oracle of Omaha

    Warren Edward Buffett is his full name. Buffett was born on August 30, 1930, in Omaha, Nebraska.

    His father was a stockbroker and a U.S. congressman.

    Mother was a housewife.

    Among their three children, Warren was the middle one and the only boy.

    From his early days, it was obvious that he is extraordinary, unusual and ingenious.

    When he was 13, Buffett was managing his own jobs as a paperboy. Also, he was retailing his own horse-racing tip sheet. And he did it very well because in the same year he filed his first tax return.

    Oh, yes! A brilliant mind declared his bike as a $35 tax reduction.

    Buffett studied Woodrow Wilson High School, Washington, D.C. And shaped ideas on how to make money. With a friend, he bought a second-hand pinball machine for $25 while attending high school.

    In a few months, the profits provided them to buy more pinballs. Buffett controlled pinballs in three separated places in one moment. After some time he sold this business for $1,200.

    Have you ever see such a demonstration of talent for financial and business affairs early in someone’s teens?

    Wait! There is more!

    Warren Buffett was a mathematical genius.

    He had the ability to keep large columns of numbers in his head and repeat them by heart.

    This talent he demonstrated sometimes later just to impress the audience. There was no other reason because he already had great success behind.

    Warren liked to attend father’s stock brokerage shop when he was a child. The main reason was the game he played, chalking the stock prices on the blackboard in the office.

    When he was 12 he made his first investment.

    Buffett bought just three shares of Cities Service Preferred. He paid $38.25 each. Warren had saved $120 and he registered his sister as a partner to buy three shares.

    The stock soon fell to $27.

    While the majority wanted to sell them as fast as it was possible, Buffett held them until they went up and reached $40.

    Then he sold them, making a $5 profit. And it was his first investing mistake because they exploded to nearly $202 per share.
    He regretted his judgment so much that later when he became a famous investor, he noticed this occasion as one of the first and most important lessons about patience in investing.

    He was really shocked. Warren saw that he and his sister would have a profit of almost $500 if he held shares a bit longer.
    But he learned the lesson, and it is more important than $500.

    His whole life was a demonstration of that knowledge.

    In Columbia University he learned and finally formed his investment philosophy – value investing. It is based on a concept established by Benjamin Graham.

    Buffett attended New York Institute of Finance to shape his economics education.

    Soon after that, he began numerous business partnerships. One with Benjamin Graham.

    Warren Buffett’s companies

    Warren Buffett - Oracle of Omaha 1

    Acquaintance with Charlie Munger brought the Buffett Partnership. This company acquired a textile manufacturing firm, Berkshire Hathaway.

    Soon after, this led to a diversified holding company with the same name.

    Let story to be told.

    In 1956 Buffet established the “Buffett Partnership Ltd” in Omaha.

    He was mastering in recognizing undervalued companies thanks to methods learned from Benjamin Graham.
    He was so successful! Of course, he became a millionaire.

    One of the undervaluing companies was Berkshire Hathaway. Buffett started buying its stocks from the 1960s, and in four or five years he had seized control of Berkshire Hathaway.

    The Buffett Partnership was a successful company. But despite that, Buffett melted the firm in 1969. He was focused on the expansion of Berkshire Hathaway.

    What did he do?

    He dismissed the textile manufacturing sector. He was developing the company by purchasing assets in media, insurance, and fuel.

    In short, Buffet bought The Washington Post, GEICO and Exxon.

    An incredibly successful person got the nickname “Oracle of Omaha”.

    The “Oracle of Omaha” even succeeded to turn obviously poor investments into treasure.

    Let us tell you this story. Incredible one.

    On the early 90s was revealed that traders in Salomon, bond trading firm, were setting incorrect Treasury bond bids to avoid trading rules.

    Mike Basham, US Treasury Deputy Assistant Secretary, heard that Salomon trader Paul Mozer had been submitting false bids. He tried to purchase more Treasury bonds than allowed by one buyer during the period between December 1990 and May 1991.

    Earlier, Berkshire Hathaway became its biggest sharer, and Warren Buffett became its manager.

    Actually, Warren Buffett was temporary Chairman of the Board in 1991 and 1992, after the firm’s emergency takeover by Warren Buffett and integration into Citigroup.

    Salomon Brothers was a Wall Street stronghold for most of the last century. But the firm fell from love after it was revealed that it is involved in a series of scandals.

    The Salomon scandal dried off one-third of Buffett’s investment.

    Buffett decided to take the controls of the company for a period of nine months.

    Warren Buffett - Oracle of Omaha 2

    Everyone thought that it was a bad investment for Buffett.

    But the ”Oracle of Omaha” not even one moment hesitated to take the thing in his hands.

    He started firing employees involved in the scandal with cold blood.

    Warren Buffet managed to restore the firm and the recovered firm was sold off to Travelers Companies Inc

    And Buffett earned an impressive profit. He doubled his investment.

    So, the “Oracle of Omaha” even succeeded to turn obviously poor investments into treasure.

    You can find more details in the book “Nightmare on Wall Street.”

    Buffett began buying stocks in the Coca-Cola Company in 1988 which resulted in 7% of the company for $1.02 billion.
    It was one of Berkshire’s best investments.

    Buffett was the director of the company from 1989 until 2006. And also, he was the director of Citigroup Global Markets Holdings, Graham Holdings Company, and The Gillette Company.

    Buffett’s work even earned him a glamorous venture into the movie business. Oliver Stone’s film, “Wall Street: Money Never Sleeps,” added cameos by Warren Buffett and short-seller James Chanos.

    Also, he appeared in “The Billionaires’ Pledge” and “The Berkshire Apprentice”.

    HBO also created a documentary “Becoming Warren Buffett,” two years ago.

    The documentary is mostly narrated by Buffett and includes interviews with people close to him. For example, his sisters, children, his business partner Charlie Munger, and Bill Gates.

    Warren Buffett is the subject of the bestseller “The Snowball”.

    The full name is “The Snowball: Warren Buffett and the Business of Life”.

    The Snowball was Amazon.com’s best business and investing book of 2008. Time Magazine, People Magazine, and critic Janet Maslin of The New York Times named it one of ten best books of the year.

    He is a philanthropist too.

    In June 2006, Buffett announced that he would give his entire fortune away to charity. His donation is one of the largest in US history. His contribution makes 85% of the total of Bill and Melinda Gates Foundation.

    But Warren Buffett is political active too.

    Political activism

    Can you understand why this is so important?

    Buffett has so much money that can live isolated from the rest of the world.

    But he is not selfish.

    This guy who is every year ranked near the top of the Forbes world billionaires list was a vocal supporter of Democratic presidential nominee Hillary Clinton.

    Three years ago Buffett launched Drive2Vote, a website aimed at encouraging citizens in Nebraska to use their right to vote.
    Also to assist in registering and driving voters if they needed a ride.

    The bottom line

    Over his 54-year ownership of Berkshire Hathaway, Buffett has produced 20.5% annual returns for shareholders.

    If someone put $1,000 investment in Berkshire when Buffett took the controls, today such would have $24.7 million.

    The Oracle of Omaha wrote in his newest annual shareholder message in February this year that he’s wanting to make an

    “elephant” of a deal, in order to help Berkshire Hathaway’s portfolio fly higher.

    The legend among investors Warren Buffett is still working, every day at his 89.

    And for the end of this story about Warren Buffett, here is one of his marvelous quotes:

    “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”

    So, readers, when you become rich, think about others and follow the example of the best.
    Anyone can do it.

    Think you know where are the markets gonna go?
     risk disclosure

  • Benjamin Graham – The greatest investor in the history

    Benjamin Graham – The greatest investor in the history

    4 min read

    Benjamin Graham - The greatest investor in the history

    Benjamin Graham is widely recognized as the father of value investing.

    He was born as Benjamin Grossbaum on May 9, 1894, in London as the oldest son into a Jewish family.

    When Graham was one year old, his parents, Isaac M. and Dorothy Grossbaum, migrated to the US. They lived in New York, where Isaac began an export-import trade.

    His childhood was really traumatic.

    He was just a nine-year-old boy when his father Isaac died. Graham’s mother Dorothy stayed alone to take care of Benjamin and his two younger brothers, Leon and Victor.

    Fathers death was one just a first in serial of unfortunate events.

    His mother Dorothy stayed to manage the family business but the Bank Panic stole her savings 1907, four years after her husband died.

    The family was dumped to poverty. Almost over the night, they lost everything.

    And finally, the family was forced to move in with her brother.

    But Benjamin Graham didn’t give up. He worked harder on himself.

    He became a really good student. Graham was an excellent student at school. He entered Columbia University on a scholarship.

    He graduated in 1914 as salutatorian of his class at Columbia.

    Salutatorian is an academic title. This honor is known in the United States and the Philippines. This means that Benjamin Graham was the second-highest-ranked graduate of the entire graduating class.

    Frankly, this is the point where the whole story began. Graham was in his 20s when he took a brave and unusual action. But

    this step led him to the fortune.
    Few weeks before his graduation, he got an offer from Columbia University to teach math, English, and Greek and Latin philosophy.

    He refused it. Despite the opportunity to finally have financial security.

    What he did instead?

    Graham joined The Wall Street.

    Early steps

    At first, he was a messenger at the Newburger, Henderson, and Loeb. That was a brokerage company at The Wall Street.
    It was almost a revolution.

    At that time university graduates did not see stockbroking as a professional choice.

    His first job was to write scores on the blackboard.

    But he was an intelligent, smart and with good educational background. The field of his responsibilities rose very soon. The brokerage’s owners gave him to work on financial analyses for the firm.

    After 6 years of working for this brokerage, he became a partner of Newburger, Henderson, and Loeb. It happened in 1920.

    At that time he changed his name, to better suit the Wall Street background.

    And soon, he was earning $50,000 per year. Not bad for 25 years old young man.

    That was not the end of his ambitions. His marvelous mind couldn’t be satisfied with such a position. Six years later, he founded with his colleague Jerome Newman, a ”Graham Newman Co.”

    And they both showed extraordinarily capabilities.

    The first winning

    They implemented some advanced strategies. Their goal was not only to secure their clients’ investments. They provided them a 670% return in a ten years time frame.

    How they did it?

    Well, it was kind of controversy betting.

    It was like this.

    They would bet that some stock price would be going up but at the same time, they were putting the bet that the price of some other stock would be going to fall. It was a simultaneous betting.

    At this way, they could entirely use accessible resources, and not to hold cash positions.

    They were beating leading mutual funds by 40%.

    And it was beginning of one marvelous career.

    Benjamin Graham - The greatest investor in the history 2

    Graham made an extraordinary discovery in 1926.

    That one provided him a leading position in the market. It was so called Northern Pipeline Affair.

    It was all about the Rockefellers and their business. Their Standard Oil was separated into 34 autonomous companies in 1911.

    Wall Street didn’t know anything about their finances. Well, actually, they knew nothing about them.

    Until the Interstate Commerce Commission demanded all pipeline companies to file financial reports.

    Going through these statements, Graham paid attention to one Northern Pipeline Company. In order to have a better view, he traveled to Washington.

    What a surprising revelation was waiting for him.

    The Northern Pipeline was trading at $65 per share. Also, the company owned railroad bonds at $95.

    Graham revealed that the company could issue its assets without the mediators.

    Benjamin Graham - The greatest investor in the history 1Benjamin Graham: The father of value investing

    And he began to purchase the company’s stock, getting 5% of it in 1926.

    And here was the twist.

    Graham demanded owners to issue the access asset to all shareholders stated they were legal owners. He was refused, of course.

    One year later, at the time of the shareholders’ meeting, Graham announced his proposal to his shareholders. He was refused again.

    Benjamin Graham decided to hire a law firm, and tried to find proxies.

    The negotiations with Rockefeller’s Foundation ended without result.

    And spectacularly turnover!

    The greatest winning

    At the beginning of 1928, Graham had got proxies for approximately 37.50% of the company’s shares.

    The new meeting with shareholders held in that year was a turning spot in his career.

    Northern Pipeline had to accept Graham’s election to its board. Moreover, they issued $70 per-share of excess liquid assets to its shareholders.

    Rockefeller invited Graham for a meeting. After that meeting, Rockefeller urged other branches to share excess liquid cash among its legal owners.

    It was a great Graham’s victory!

    The ”Northern Pipeline Affair,” set Benjamin Graham as an excellent analyst and a shareholder protector.

    In 1929, during the Great Depression, Graham Newman Partnership despite the great lost continued to work. They managed to recover their assets, and never lose again.

    Their average annual return was of 17% until 1956.

    But the Great Depression was the great inspiration to Graham too.

    Benjamin Graham’s legacy

    He published his first book, ‘Security Analysis’ in 1934, the first book that dealt with the art of investments.

    Five years after, Graham published his fundamental work, “The Intelligent Investor”. All that time, he had a significant position in the stock market.

    His market play was: buy shares and trade them lesser than the companies liquidation value, which provided him minimum risks.

    Benjamin Graham’s play in the stock market excited many young investors. One of them was Warren Edward Buffett. Also, William J. Ruane, Seth Klarman, Bill Ackman, and Charles H. Brandes also considered themselves to be Graham’s followers.
    They all employed his value investing techniques. And they expanded them to all markets all over the world.

    Benjamin Graham’s masterpieces are “Security Analysis” and “The Intelligent Investor”.

    In “Security Analysis”, he explicitly differentiated between investment and speculation. The subject of his  ‘The Intelligent Investor’, is value investing.

    We are sure you heard about “Benjamin Graham formula”.

    It is published in “The Intelligent Investor”.

    This formula can help the investors to instantly discover if their stocks were priced reasonably.

    Benjamin Graham married thrice.

    His private life is not known well. Graham had at least three sons.

    On September 21, 1976, Graham died in Aix-en-Provence, France, at the age of 82.

    The bottom line

    It really looks so easy to be a great investor. Actually, it isn’t. But it is so easy to be an investor. Even with a little money. 
    And there are no limitations to try it.

    Investing is so simple these days. You can get all the help you need. Also, you may implement some of the algo techniques. Or you can use robo advisors.

    All of them are present in the market to help you to gain your profit. So, why to wait?
    Go! Try your hand!

    Who knows, maybe you, yes, you, you can be the next Benjamin Graham.

    We are sure you are next.

    Don’t waste your money!
    risk disclosure

  • Who Are The Best UK Investors All the Time?

    Who Are The Best UK Investors All the Time?

    The Best UK Investors All the Time
    Finding the best UK investors all the time was a quite difficult job. There are so many incredible investors in the UK. but also some of them even the best made unbelievable failures.  

    Traders Paradise decided to write about the best UK investors from the second part of the XX century.
    Some of them are still active, fortunately.

    The other reason why writing about the best UK investors was a tricky job is that not all of them are widely present in the public. Moreover, the majority of the best UK investors avoid that.

    Anyway, Traders Paradise went all across the internet, examined all articles about them and there is our presentation of the best UK investors. Right in front of you.  

    Maybe some of them could be an inspiration for you. Moreover, you can mirror their investing performances or just get a clue on how to start or improve your investing style.

    Enjoy the reading!

    Wild markets are like a boomerang.

    If investors have fear or panic there will be a lot of ups and downs in the markets. Or, when the market is volatile investors are frightened and panicked.

    But some investors are different. They can see opportunity where every other see disaster. So, we can say that great and famous investors always have self-discipline and patience. That’s why they are successful.

    Who are the best UK investors?

    And our story will start with the economist that developed his own economic school of thought thanks to his followers.

    John Maynard Keynes

    John Maynard KeynesJohn Maynard Keynes

    He was born on 5 June 1883 in Cambridge into an erudite family. They were open-minded family. His mother was the first female mayor and father was a philosopher and economist.

    Keynes studied mathematics at Cambridge University.

    After finishing, he found a job in the India Office. At the same time, he worked on a dissertation. That secured him a membership at King’s College. He stayed at Indian position till 1908 after which he came back to Cambridge. He joined the treasury at the beginning of World War One. When the war was ended, he issued ‘The Economic Consequences of the Peace’ which became a best-seller.

    Between two World Wars, he earned a very steady amount of money by investing in the financial markets. Also, he continued his theoretical work. His most famous piece ‘The General Theory of Employment, Interest, and Money’ was issued in 1936. Even today, it is the caliber for economic theory all over the world. After that book, it was so easy for Keynes to become a famous economist in the UK and with the most influence. With the beginning of World War Two, he continued to work for the treasury again and became a member of the house of lords.

    John Maynard Keynes built macroeconomics in the 1930s.

    He is largely disregarded now.

    The central idea of this economic school of thought is that government intervention can secure the economy.

    During the Great Depression of the 1930s, economic theory was incapable to explain the circumstances of the dangerous economic collapse.

    Keynes produced a revolution in economic thinking for that time.  

    The stand of Keynes’s theory is the idea that aggregate demand (a theory of total spending in the economy) is driving power in the economy.

    Aggregate demand is the total of spending by households, businesses, and the government.

    Further, Keynes asserted that free markets have no ability to balance mechanisms that direct to full employment.

    Keynesian economists support government intervention through public policies. Governmental intervention can lead to price stability and full employment, state Keynesians.

    During the war, Keynes had a crucial position in the consultations. He is one of the most important figures that developed the post-war global economic order. He had an important role in the devising of the World Bank and the International Monetary Fund.

    Famous John Maynard Keynes died on 21 April 1946.

    Neil Woodford

    The Best UK Investors All the Time 1Neil Woodford is one of the best UK investors

    He was one of the most honored and best-known fund managers in the UK. He was born in March 1960. In 1981 he has a degree from Economics and Agricultural Economics from the University of Exeter.

    More than 26 years he was a central member of the UK equities team at Invesco Perpetual.  He was named a Commander of the Order of the British Empire (CBE) in 2013 for services to the economy.

    As a leader of investments at Invesco Perpetual Woodford managed over £15 billion of assets. In 2014 Neil founded his own fund management firm, Woodford Investment Management LLP.  

    Prior to this, he was the head of UK Equities at Invesco Asset Management Limited and had been its fund manager since 1998. Woodford had worked as a fund manager at Eagle Star since 1987. He was also employed at Woodford Asset Management LLP. 

    Early days

    Woodford began his investment career at the Dominion Insurance Company in 198. He has experience in both corporate finance and fund management.

    He doesn’t like to be a public figure so we can find a little bit of information about his life.  In a rare interview, he said his £10.6bn Woodford Investment Management business now.  If you ask anyone in the UK to identify an investment manager they will point one name: ‘Neil Woodford’.

    The audience in the UK likes to believe that Woodford is their response to US investor Warren Buffet. There is a legend connected to Woodford’s work as an investor.  Britains believe that he is one of only several fund managers in the world who are able to cheat the market and producing long-term returns for investors.

    The truth is that thanks to his knowledge, his investors avoided the dangers of the bursting of the “dotcom” stock market bubble in early 2000. And then proceeded to make money for them.

    Woodford is the private investor’s champion in the UK. Britains like to say he is the man who made Middle England rich.
    ‘I’m not an investment genius,’ he said once. ‘I am just someone who follows a disciplined and rigorous investment approach. If you want to talk investment geniuses, think Anthony Bolton. And, of course, the epitome of genius, Warren Buffett.

    ‘Yes, people have heaped praise on me in the past but they have also not spared me opprobrium. Everybody likes to build people up in this country and then smash them down.’

    In March 2000, financial advisers accused him of ‘intransigence’ over his refusal to acknowledge the potential of technology stocks. Today, it looks like bad luck is following him. But Woodford is street-fighter. He will know how to deal with it.

    UPDATE 12/07/20:

    In October 2019, one of the best UK’s stockpickers ended his multi-billion-pound empire.
    He is known as “Oracle of Oxford” “and was dismissed from his troubled £3.1bn Equity Income fund by its administrators,” wrote BBC.
    But last news tells that Neil Woodford is back in business.
    Woodford announced several days ago he would leave the last two funds he is managing, Income Focus and Woodford Patient Capital. Also, he said he will close all investment management business.

    John Templeton

    The Best UK Investors All the Time 2John Marks Templeton one of the best UK investor

    Sir John Marks Templeton was a UK investor, banker, and fund manager. In 1954, he entered the mutual fund market and created the Templeton Growth Fund. In 1999, Money magazine named him “arguably the greatest global stock picker of the century.”

    He was born on November 29, 1912, in Winchester, Tennessee, United States. Died on July 8, 2008, in Doctor’s Hospital, Nassau, The Bahamas.

    As a pioneer in both financial investment and philanthropy, John Templeton spent a lifetime encouraging open-mindedness. He created the motto for his Foundation, “How little we know, how eager to learn.”  Maybe that the best represents his philosophy both in the financial markets and in his methods of philanthropy.

    He attended Yale University and graduating in 1934 near the top of his class. Also, he graduated with a degree in law in 1936.

    Templeton began his Wall Street career in 1938.

    We can say he created some of the globe’s greatest international investment funds.

    He took the strategy of “buy low, sell high” to a maximum. Templeton was picking nations, industries, and companies popping the bottom. He called it “points of maximum pessimism.”

    In 1939, he borrowed money to buy 100 shares each in 104 companies selling at one dollar per share or less. Among them were 34 companies that were in bankruptcy.

    He turned huge profits from them. Among his chosen 104 companies only 4 were wasted, actually worthless.

    In 1954 he founded the Templeton Growth Fund. With dividends reinvested, each $10,000 invested in the Templeton Growth Fund Class A at its inception would have grown to $2 million.

    In 1992, he sold the Templeton Funds to the Franklin Group. In 1999, Money magazine called him “arguably the greatest global stock picker of the century.”

    Templeton became a billionaire by globally diversifying mutual funds. His Templeton Growth Fund, Ltd. was among the first to invest in Japan in the middle of the 1960s. Templeton also created funds in nuclear energy, chemicals, and electronics. By 1959, Templeton went public, with five funds and more than $66 million under management.

    He refused technical analysis for stock trading, favoring instead to use fundamental analysis.

    ‘You can’t outperform the market if you buy the market’ was one of his favorite sayings. How did he manage to beat it so spectacularly himself?

    Templeton was one of the most generous philanthropists in history. He gave away over $1 billion to charitable causes.

    In 1972 he established the Templeton Prize, which, according to the charitable foundation that he started, is the world’s largest annual award given to an individual. The prize, which rewards those who have “made an exceptional contribution to affirming life’s spiritual dimension”. It is currently £1m and always beats the value of the Nobel Prizes. Winners have included Desmond Tutu, Dalai Lama, Chiara Lubich, Mother Teresa, Lord Jakobovits, King Abdullah of Jordan, Arthur Peacocke, etc.

    Templeton renounced his US citizenship in 1964. He held dual naturalized Bahamian and British citizenship and lived in the Bahamas.

    Richard Branson

    The Best UK Investors All the Time 3Richard Branson

    Sir Richard Charles Nicholas Branson was born on July 18, 1950, in Surrey, England. He is a UK business magnate, investor, author, and philanthropist. Also, He founded the Virgin Group, which controls more than 400 companies.

    He launched Virgin Records in the early 1970s. It is now the multinational Virgin Group. His early life story is a bit out of the standard. Richard Branson dropped out the school at age 16.

    Branson has dyslexia and had poor academic performance. On his last day at school, his headmaster, Robert Drayson, told him he would either end up in prison or become a millionaire.  In London, Branson started off squatting between 1967 and 1968. He launched his first successful business, a magazine named Student, in 1966.

    The first issue of Student appeared in January 1968, and a year later, Branson’s net worth was estimated at £50,000. Branson started his record business from the church where he ran Student magazine. He interviewed several popular figures of the late 1960s including Mick Jagger and R. D. Laing.  

    Branson advertised popular records in Student, and it was an overnight success.

    Once Branson said, “There is no point in starting your own business unless you do it out of a sense of frustration.”

    Branson eventually started a record shop in Oxford Street in London. In 1971, he was questioned in connection with the selling of records that had been declared export stock. The matter was never brought before a court because Branson agreed to repay any unpaid VAT of 33% and a £70,000 fine.

    His parents re-mortgaged the family home in order to help pay the settlement.

    His entrepreneurial projects started in the music industry and expanded into other sectors, including the space-tourism venture Virgin Galactic, making him a billionaire.

    The Virgin Group reached 35 countries around the world, with nearly 70,000 employees handling affairs in the United Kingdom, the United States, Australia, Canada, Asia, Europe, South Africa, and beyond.

    Branson is also known for his adventurous spirit and sporting achievements.

    Richard Branson ranks eighth among the wealthiest British billionaires by net worth.

    Mike Ashley

    The Best UK Investors All the Time 4Mike Ashley

    A famous investor Wallace Ashley is a British billionaire and investor in the sporting goods market and one of the best UK investors. 
    He entered the field store industry following the acquisition of House of Fraser. He is also the owner of Newcastle United after paying around £135 million to buy the club.

    Ashley turned whistleblower on industry rivals in 2000, handing the Office of Fair Trading evidence of business meetings held by sports retailers to fix the price of football shirts. Ashley attended a meeting at the Cheshire home of David Hughes, the chairman of now-bankrupt rival Allsports. At the meeting, Dave Whelan, the founder of JJB Sports, reportedly told Ashley: “There’s a club in the north, son, and you’re not part of it.”

    On 23 May 2007, Ashley bought Sir John Hall’s 41.6% stake in Newcastle United at one pound per share, for a total cost of £55,342,223 via his company St James Holdings Ltd.

    Under the terms of UK takeover law, having purchased more than 30% of a listed company. And he was obliged to make an offer to buy the remaining shares at the same or a greater price.

    On 31 May, it was announced that the Newcastle board were considering Ashley’s offer.

    On 7 June, it was confirmed that chairman Freddy Shepherd had agreed to sell his 28% share to Ashley, which left Ashley free to take control of the club.

    As of 15 June 2007, Ashley owned a 77.06% stake in Newcastle United, on course to withdraw the club from the stock exchange having surpassed the 75% threshold required.

    The hundred percent acquisition was done in July. Ashley paid around £134 million. He also paid off large sums of debt obtained from the previous administration.

    On 11 May 2016, Newcastle United were relegated for the second time under the ownership of Ashley, after local rivals, Sunderland beat Everton 3–0.

    As of October 2014, Ashley owned an 8.92% stake in Rangers International Football Club (RIFC), the parent company of Scottish football club Rangers. The Scottish Football Association has rejected Ashley’s request to raise his shareholding in RIFC to 29.9%, due to the fact he already owns a large amount of Newcastle United shares, which was seen as a conflict of interest.

    In January 2015, Rangers fans protested against Mike Ashley’s plans to secure a £10 million loan using the club’s stadium as security. All the main Rangers supporter groups have heavily criticized Ashley and expressed major concern and distrust about his nature and purpose of his intentions.

    On 23 June 2017 Ashley sold his entire Rangers shareholding to Club 1872 and Julian Wolhardt.

    Ashley is protective of his private life. He is known to prefer casual dress rather than a suit. He often carries his fundamental business tool of a mobile phone in a plastic carrier bag rather than a briefcase.

    Ashley is a private person, he never attended industry functions or gave interviews.

    He left school at 16.

    Anthony Bolton

    The Best UK Investors All the Time 5Anthony Bolton

    He was born on 7 March 1950.

    Anthony Bolton is one of the UK’s best-known investment fund managers and most successful investors. He had managed the Fidelity Special Situations fund from December 1979 to December 2007.

    Over this 28-year period, the fund achieved annualized growth of 19.5%, far in excess of the 13.5% growth of the wider stock exchange, turning a £1,000 investment into £147,000.  Until April 2014 he managed Fidelity China Special Situations PLC, a London Stock Exchange-listed investment trust.

    He started a career at the age of 29, he was recruited by Fidelity as one of their first London based investment managers. In surveys of professional investors, he is regularly voted the fund manager most respected by his peers.

    Bolton began managing Special Situations (a UK equity OEIC) when he joined Fidelity in 1979 and continued until 2007.

    He managed other funds alongside Special Situations during this time. From November 1985 to December 2002, he managed the Fidelity European Fund (a European equity OEIC). He managed the Fidelity European Growth fund (a European equity SICAV) from 1990 to 2003, Fidelity European Values PLC (a UK-listed investment trust) from 1991 to 2001, and Fidelity Special Values PLC (also a UK-listed investment trust) from 1994 to 2007.

    In 2006 his Special Situations Fund was split.

    The success of the fund had brought in so much money from investors, it had become the UK’s largest open-ended fund (OEIC) and it was feared that the fund was becoming too big to manage successfully.

    The fund was split into the UK and Global Special Situations funds. The Global Fund and the UK fund continuing under Bolton’s stewardship until the end of 2007.  With Bolton’s step back from fund management, many questioned whether the fund could continue to outperform the market in the future. And not without the reason.

    Bolton’s former funds suffered amongst the worst redemptions in 2007.

    Investors withdrew £335m from the Special Situations fund and £508m from Global Special Situations. However, redemptions in both funds slowed significantly in 2008, and in March 2010, at £3 billion, the UK fund is almost back to the same size as when Bolton stepped down.

    When he stopped managing funds in 2007, he took a full-time role in mentoring and developing newer investment managers.
    He still works with Fidelity.

    Nick Leslau

    Nick LeslauNick Leslau

    This famous UK investor was born on 18 August 1959. He is a UK commercial property investor. His wealth is estimated at £350 million.
    Leslau is chairman of Prestbury Investments.  

    He is a 30% shareholder in Prestbury‘s Secure Income REIT which owns properties such as Thorpe Park, Warwick Castle, and Alton Towers. Secure Income REIT also owns 20 private hospitals and 55 Travelodge hotels in the UK.

    Early days

    Leslau left the University of Warwick where he was studying German, studying surveying, and become one of the best UK investors.

    Leslau joined the ground rent company of commodities traders Burford Group. He had completed a degree in estate management at South Bank University and became a chartered surveyor with Burford. At age 23, he became CEO of Burford Estate & Property.

    Wanting to move further into the property, contacted Nigel Wray to engineer a reverse takeover of Wray’s listed company Chartsearch in 1986 for £8 million. They expanded the company into a £1 billion enterprise, buying large parts of Oxford Street and the Trocadero center.

    In 1997, Leslau and Wray set up their own small property company MAYBEAT Limited, which they merged into one of Michael Edelson’s Alternative Investment Market-listed shell companies called Prestbury Group Plc.

    The board consisted of Leslau, Wray, Viscount Astor, John Hodson (the then chief executive of private bank Singer & Friedlander), and Edelson. Over the next two years, it produced a return of 150% on net asset value. Leslau grew its total value to several hundreds of millions of pounds before taking it private in 2004.

    In 1999, Leslau founded an investment vehicle, Edenhawk, collectively with Wray, Archie Norman, and Julian Richer. And once again, they merged the company into an Edelson shell company, Knutsford Plc. The plan was to acquire a retail business to take advantage of the retailing skills of Norman, a former Chairman of Asda, and Richer, who had built up the retail group Richer Sounds.

    Within weeks the value of Knutsford had soared to £1 billion.

    They attracted attention from financial media around the world as potential acquisition targets were touted by the media such as Marks & Spencers and Sainsbury’s. Knutsford concluded a deal with WI Link (which continues to trade successfully).  No one could hope to achieve the dizzy expectations generated by the media in the weeks after flotation.

    Knutsford announced the end of the dot com boom in the UK.

    In February 2001 Leslau set up a private company, Prestbury Investment Holdings, funded by HBOS and Sir Tom Hunter.
    Leslau is now chairman of Prestbury Investments.

    He has sat on many quoted and unquoted company boards including, most recently, Max Property Group Plc, and is a Member of the Bank of England Property Forum.

    Jim Slater

    Jim SlaterJim Slater is one of the best UK investors all the time

    James Derrick Slater was born on 13 March 1929 and died on 18 November 2015). He was a British accountant, investor, and business writer. Slater rose to prominence in the 1970s as a businessman and financier. And one of the best UK investors.
    In 1964, investor Jim Slater acquired control of H Lottery & Co Ltd, a £1.5m public company, which with his business partner Peter Walker they renamed Slater Walker Securities.

    In the 1960s and 1970s, James Slater was one of the top players in the City. He was active in business and investing until his death in 2015.

    Slater was, at the beginning of his career, a chartered accountant and writer. He had a column in the Sunday Telegraph and he was writing under the nickname ‘Capitalist’.  

    Slater Walker Securities was a huge success in the 1960s and early 1970s. But it crashed in the banking crisis of 1974.

    The firm was in connection with acquiring businesses and selling off anything that was considered to be surplus to demands.

    During the secondary banking crisis in 1975, Slater Walker faced financial difficulties and received support from the Bank of England. Slater resigned as chairman in October 1975, because the Singapore Government began to try to extradite him from the UK for alleged offenses by the company in Singapore referring to the alleged misuse of more than £4 million of company funds in share deals. The Singapore government’s attempt to extradite Slater was dismissed by the Chief Metropolitan Magistrate at Horseferry Road Magistrates’ Court in 1977.

    In separate proceedings, following the takeover of the company by the Bank of England, a prosecution was brought against Slater by the Department of Trade alleging 15 counts of offenses under the Companies Act.

    Slater was guilty of the Companies Act offenses and fined £15 per count.

    Fortunately, the court accepted that the offenses were purely technical. Also that Slater didn’t act dishonestly and that there was no question of him having made any personal gain through committing them.

    Finding himself technically bankrupt after the collapse of Slater Walker, Jim Slater invested his residual funds and repaid all of his personal creditors within a few years. And paid with interest.

    Slate came to publicity again as the author of The Zulu Principle.

    That book, and his subsequent Beyond the Zulu Principle in 1996, Slate spread the idea of investing in small-cap stocks, and the use of the PEG ratio to help identify targets.

    Slater did not create the PEG. But he was absolutely responsible for its popularity as a stock-picking tool.

    In order to find a way to help investors to filter the full market to find out which shares are worth looking at, Slater developed the Company Really Essential Financial Statistics products — REFS.

    Be focused on small caps was Slater’s investment style. His famous statement was “Elephants don’t gallop.”

    That explains the idea that big companies cannot double in size, but small ones can. He has also devoted himself to knowledge.

    The website The Motley Fool wrote about Slater:

    “He doesn’t want to know a little about everything, he wants to know everything about a few things. If those few things include a handful of neglected companies, the chances of his making money should be greatly increased.”

    His hobby was chess. Amongst other sponsorships he donated $125,000 to make possible the 1972 World Chess Championship between Bobby Fischer and Boris Spassky in Reykjavík, Iceland, doubling the total prize fund.

    Why these UK investors?

    This is our choice of the best UK investors. Maybe some others have different. Our criteria while we were trying to pick the best UK investors were how do they influence the market, the companies they hold, and moreover, how they were acting when everything gets apart.

    Yes, they show strength, power, but more than anything, they are fighters. They are the best UK investors because they have self-discipline and patience to achieve their goals even when markets play against them.

    They are the winners and hence, they are the best UK investors.

  • The quick ratio or acid test ratio

    The quick ratio or acid test ratio

    3 min read

    The quick ratio or acid test ratio 3

    The quick ratio is a liquidity ratio that estimates the strength of a company to pay its current obligations when they come due with only quick assets. It is also called an acid test ratio.

    Quick assets are current assets that you can change to currencies within 90 days or in the short-term.

    In other words, the quick ratio is a measure of how well a company can meet its short-term financial liabilities.
    It is liquidity metric and can be calculated as follows:

    (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities

    The quick ratio can be calculated for quick assets only.

    The quick ratio or acid test ratio

    Let’s explain why sometimes the quick ratio is known as an acid ratio?

    That comes due to the historical use of acid to examine metals for gold. The early miners used it.

    If the metal passes the test, they know it is pure gold. But if the result was opposite and metal was rusting, the gold miners knew there is no value.

    The acid test of investment determines is a company able to instantly change its assets into cash within 90 days.
    So, the acid test ratio is a more traditional variant. The other liquidity metric is a modern one – the current ratio.  

    They are pretty similar but the acid test ratio gives a more precise estimation.

    How is that?

    The acid test includes only the most liquid assets to study.

    It will never examine inventory because it is almost impossible to change inventory into the cash in a short time frame. The company often sell inventory on credit.

    Yes, there are some analysts that add inventory in the ratio, but if it is more liquid than some receivables.
    To show you, let’s assume this information was in the balance sheet of our hypothetical firm:

    The quick ratio or acid test ratio 1

    Let’s apply the first quick ratio formula and the data above. So, we can figure this company acid test ratio:

    ($70,000+$20,000+$50,000) / $105,000 = 1,33

    This means that for every dollar of this company’s current liabilities, it has $1.33 of very liquid assets to satisfy urgent obligations.

    We will not take inventory into consideration. As we said, the company may require months or years to sell inventory.
    Why it matters?

    It is important that a company have sufficient cash to pay accounts, interests when they come to be paid. The higher ratio shows that the company is more financially secure in the short term. The companies with a quick ratio greater than 1.0 are enough capable to meet their short-term obligations.

    Low or decreasing acid- test ratios usually shows that a company is fighting to keep or increase sales.

    Maybe it is paying bills immediately or getting receivables too slowly. Hence, a high or increasing acid-test ratio means that a company has solid growth.

    It is quickly turning receivables into cash and regularly covers its financial obligations. Such a company regularly has active inventory turnover and cash exchange periods.

    However, the acid-test ratio has its possible disadvantages.

    To begin, it provides no data about the level and timing of cash flows. And it is very important because it really defines a company’s ability to pay liabilities to the arranged date.

    Also, the formula assumes that a company would sell its current assets to pay current obligations. That is not always pragmatic.

    But this analysis can give you a solid and quick view of some company’s financial status.

    It is crucial for investors to know if some company are ready to pay its bills and credits.

    Some firms use their long-term assets to produce earnings. But, selling off resources will damage the company. Also, it is a signal to investors that current plans aren’t making enough profits.

    Higher quick ratios are more welcome for the company.

    It confirms there are more quick assets than current liabilities.

    A company with a quick ratio of 1 indicates that quick assets are equal to current assets. This also shows that the company could pay off its current debts and not to sell any long-term assets.

    An acid ratio of 2 indicates that the company has twice more quick assets than current liabilities.

    And you can see how does it work. When the ratio increases, the liquidity of the company increases too.

    This is a good sign for investors. Well, this is an even better sign for creditors. You know, creditors want to know they will be paid back on time.

    One example more.

    Let’s assume some company is asking for a loan. The bank asks a complete balance sheet so it can calculate the quick ratio. Company’s balance sheet carries the following accounts:

    table

    The bank can count quick ratio like this.

    ($20,000+$7,000+$2,000) / $21,000 = 1,38

    As you can see the company’s quick ratio is 1.38. This means that the company can pay off all of the current contracts with quick assets. And moreover,  it will have some quick assets left over.

    For investors, it’s good news, too.

    Don’t waste your money!
    risk disclosure

  • Top Stocks to Buy And Hold Forever

    Top Stocks to Buy And Hold Forever

    4 min read

    Top Stocks to buy 2019 and Hold Forever
    So many people asked us what are the top stocks to buy in 2019.

    It is on a daily base.

    So, we will try to answer. This to all of you want to know and don’t have time to evaluate them.
    We don’t want your one-time appearance here, we would like to build a real relationship and confidence.

    This the article for you who want to enter the stock market this year.

    Well, you know, Warren Buffett’s personal holding season is “forever” and look how is he.

    Having that on our minds, here’s a summary of 5 stocks to buy and hold forever.

    We understand, investing is difficult. Developing a portfolio of top stocks to buy is tricky even for economic experts.

    There are still stocks to buy, don’t be worried. Moreover, they can give you really nice returns.

    • Johnson & Johnson (JNJ)

    Top Stocks to buy 2019 and Hold Forever 1Image Johnson & Johnson (JNJ) chart: source Yahoo Finance

    Everyone needs their products. They will forever have something to sell,  to us or the rest of the world. So why we, while buying their product, wouldn’t have an income?

    List of Johnson & Johnson brands is so long.

    J&J is a company with a long history.  All can identify their best brands. For example, Johnson’s Baby Shampoo or Baby Powder.

    It is founded the 1800s in New Jersey and since then Johnson & Johnson has extended its brands. Today,  you can find Johnson & Johnson brands all over the world. From your bathrooms to your doctor cabinet.

    The medicines, surgical products or healthcare solutions will never disappear. J&J has a really big portfolio.

    No one should think even a second when it comes to investing in such a company. They have products, for example, cancer drugs that will produce good growth now and in the future.

    The company is investing the robotic surgical opportunities gravely, in February announced that it’s buying robotic surgery firm Auris Health for $3.4 billion.

    J&J annual yield on the dividend is 2.60% and has an 8.46% gain per year.

    It is really among top stocks.

    • Boeing Company (BA)

    Top Stocks to buy 2019 and Hold Forever 2

    Image Boeing company chart: source Yahoo Finance

    This company had hard March this year. After the fatal crash of Ethiopian Airlines, its shares fell down.

    The company took the problems with their jet seriously and experts are working on new software.

    On the beginning of the March this year their shares were worth $446, but now they are about $400. The stock could jump when their 737 Max types are on the sky again.

    It is a very steady company. Their F-15 fighters are extremely valued.

    Boeing arranged a selling of those fighters with US Air Force over the next 5 years for $8 billion.

    The company raises the quarterly dividend yield for 2.6%.

    Boeing announced a quarterly dividend of $2.055 per share which is $8.22 per year. This is a 20.2% rise from the previous dividend of $1.71.

    The annual yield on the dividend is 2.6%.

    • Colgate-Palmolive (CL)

    Top Stocks to buy 2019 and Hold Forever 3

    Image Colgate-Palmolive chart: source Yahoo Finance

    Why do we add Colgate here while everyone knows that this company recorded some suspicious inclinations in spending? Yes, we know that shareholders didn’t like that. That’s is changed as the company decided to make an important decrease in the costs. The advantages of that effort could last decades.

    Their brands are among most buying products. For example, their toothpaste, or soap (of course Palmolive soaps), and manual toothbrush, and other pharmaceutical products for dentists.

    The company is selling its products in more than 200 countries. Colgate-Palmolive includes two product sections:

    ersonal, oral, and home care is one; and the second is pet nutrition.

    It is a leader in the global oral care market.

    Also, it is a leader in pet nutrition products for dogs and cats.

    They’re all made by Colgate-Palmolive Company.

    The company declared a dividend yield on 2.50% and the year-to-date gain of 16%.

    Well, some can say Colgate is high-risk stock but with the big potential returns.

    • Alphabet (GOOGL, GOOG)

    Google

    Image Alphabet Inc. chart: source Yahoo Finance

    Alphabet Inc declared $12.77 per share for the last quartal.

    It looks that Alphabet is the revenue growth provider. Revenue grew 21.5% to $39.28 billion in the fourth quartal.

    It is for sure one of the stocks which you have to buy and hold forever.

    This tech titan is Google parent company.

    Alphabet Class A and C shares have grown 15.5% and 15.4%, over the one-year period April 18. The S&P 500, including dividends, is up 9.4% over the same time frame.

    Yes, the quarter’s reported earnings will be negatively influenced by a 1.5 billion euro (about $1.7 billion) penalty required by the European Commission in March.

    The European Commission claimed that Google demonstrated anticompetitive methods linked to deals it had with Adsense for Search associates.

    Well, the company is prepared to appeal, so investors may be sure that the penalty will be lower.

    Google’s revenue grew quick.

    The cost of sales would increase in the fourth quarter, forced by higher sales and projected content purchase costs at YouTube.

    There are also, Fiber high-speed internet industry, and its Verily life science.

    We all can see the changes because Alphabet’s self-driving vehicle tech branch Waymo recently start being monetized.

    • The Walt Disney Company (DIS)

    Disney

    Image The Walt Disney Company (DIS) chart: source Yahoo Finance

    Disney is the globe’s greatest media. They have movie studios, television networks.

    Assets controlled by Disney add Disney Animation Studios, Pixar, Marvel, Star Wars, the ABC network, the Disney Channel.

    Disney is close to finalizing an arrangement to take 21st Century Fox. That will combine the 20th Century Fox film studio, National Geographic, and a mixture of other media assets. But not the Fox News.

    Disney has Disney Plus streaming service.

    In the first half of April,  it revealed the price, shows, and movies. Everything planned to overcome Netflix as a rival.

    In 2018, Disney launched ESPN+, their streaming service, and in the time frame of five months had more than a million subscribers.

    And don’t forget, Disney owns Hulu. Disney plans for its three platforms to be separate subscriptions, but it’s likely to connect them at a discount.

    In the moment of writing this article, we are two days out from the release of Avengers: Endgame.

    Predictions about how much money it will bring to Disney are fantastic.

    THR – the range of $200-$250 million.

    Deadline – passing $260 million, and maybe $300 million marks. ComicBook.com – prediction gathered from 3 analytics, $300 million.

    Impressive.

    Disney’s stock has jumped 13.6% in just five trading days in April. They will not look back now. Disney is a market sweetheart.

    Not bad for an old player.

    It is a good investment and one of the top stocks for sure.

    Don’t waste your money!

     risk disclosure



  • HFT Strategies – The Tips and Secrets

    HFT Strategies – The Tips and Secrets

    3 min read

    HFT strategies - the tips and secrets
    HFT uses practically basic and simple strategies. High-frequency trading is not about implementing the strategy, it is all about speed of execution and flexibility.

    Well, the main strategy of HFT is to run faster than others. Of course, the principles of high-frequency trading (HFT) firms are secrecy, strategy, and speed.

    Algo trading is linked with the execution of trade orders. But HFT refers to the implementation of proprietary trading strategies.

    High-frequency trading consists of a variety of AT.

    Yes, both enable traders and investors to speed up the response on market data.

    The society of market participants using HFT is extremely mixed.

    There is a crowd of various organizations with various business forms that use HFT and there are many hybrid models.

    For example, some brokers and exchanges are utilizing HFT systems. So, in the estimation of HFT, it is essential to consider a practical perspective.

    It doesn’t matter if HFT is just an add-on technology to realize trading strategies.

    Liquidity providing is one of the HFT strategies.

    HFT strategies - the tips and secrets 1
    Well, the most frequent HFT strategies are to serve as a liquidity provider.

    How does HTF provide it?

    HFT liquidity providers have two primary reservoirs: when they provide markets with the liquidity they pocket the spread between the bid and ask limits. Also, there is a trading income by granting discounts or lowered transaction fees. The aim is to increase market quality and attractiveness.

    HFT firms will never discover their ways of acting. The significant experts linked with HFT are undercover. Well, this is not quite true. Maybe we could say they want to be in front of the public eyes less than others.

    Those firms operate with various strategies to trade and earn money. The strategies are often many kinds of arbitrage. For example, volatility arbitrage, or index arbitrage.

    HFT employs software that is incredibly fast. They have access to all market data and can make connections with minimum latency.

    HFT firms regularly use own money, own technology and a number of special strategies to produce profits.
    There are numerous strategies applied by traders to earn money for their firms.

    Even the controversial strategies.

    For example, HFT firms may trade from both parties.

    Hence, they can place orders to sell using a limit order above the market price. Also, they can place the buy order a little bit below the market price.

    And, voila! There is a profit for them. The difference between the two prices. They are market makers. All these transactions are very fast, in a millisecond by using algorithms and robust computers.

    Spread capturing as HFT strategy

    HFT strategies - the tips and secrets 2
    HFT firms are liquidity providers. They profit from the spread between the bid and ask prices.

    How?

    They are buying and selling securities all the time.

    With each trade, they receive the spread between the price at which shareholders buy contracts and the other at which they can sell contracts.

    Rebate driven strategies

    The liquidity provision strategies are developed on particular stimulus systems.

    In order to encourage liquidity providers, some trading venues use unsymmetric pricing. They charge a lower fee or give a rebate for market makers or passive trading.

    Why?

    Such traders bring liquidity to the market.

    On the other side, for more aggressive tradings they charge a higher fee. Why? Such traders remove liquidity from the market.

    An unsymmetric fee arrangement aims to boost liquidity provision.

    Point is: traders supplying liquidity earn their profits from the market spread. Fee discounts or rebates stimulate a market‘s liquidity.  

    On this way, those markets look promising comparing to their rivals.

    Arbitrage

    Chances to perform arbitrage strategies generally survive only for fractions of a second.

    But computers mission is to examine the markets in a millisecond. That feature causes the arbitrage to become the main strategy employed by HFTs.

    To conduct arbitrage HFT use the same method as traditional traders. But they use an algorithm to profit from short-lived differences between securities. The other types of arbitrage are not restricted to HFT and such, they are not the subject of this post.

    Latency arbitrage

    The latency arbitrage is the ability of HFTs to recognize new market information before other market participants even get it.

    The latency arbitrage uses direct data feeds and co-located servers to short the reaction time. Latency arbitrageurs profit from speed power. Such market participants can reduce the prices at which other traders are able to trade. That’s why you can find them under the name of predatory.

    Liquidity detection

    HFTs try to recognize the patterns other traders leave and adjust their actions accord to them. The focus of liquidity detectors is large orders.

    Liquidity detectors are getting information about algorithmic traders is usually called sniffing out the other algos.

    The bottom line

    HFT is not a trading strategy. It is the usage of advanced technology that performs traditional trading strategies. The individual trading strategies need to be assessed rather than HFT as such.

    HFT should never be banned. It would be contrary to market efficiency. High-frequency trading contributes to market liquidity and to the ability of the price creation.

    However, any strategies that have a contradictory influence on market integrity or enable market abuse, has to be are completely reviewed.

    This is particularly important for HFT. If anyone believes this technology promotes the implementation of abusing strategies, moreover, makes them more profitable and creates unfair circumstances on the market, should check the other participants too.

    Our confidence in technology is huge, but we are very cautious when it comes to the people.  

    Technology by itself is without morality. The people are those who can add it to high-tech.   

    Fortunately, we, ordinary people, don’t have any access to HFT.

    Don’t waste your money!

    risk disclosure