the trading pitt first meeting
TRANSCRIPT
8/7/2019 The Trading Pitt First Meeting
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W HAT THE TRADING PITT IS ABOUT
Teaching a set of trading skillsGetting members on Wall StreetEducating people about all kinds of financialproductsNetworkingDifferent than every other University and club in theUnited StatesTurn Pitt into a recruiting center for traders andfinance jobs
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PLANS
Two meetings a week: General and the TradingCourseVisitsTrading CompetitionsCareer Path Directory / Finance UniverseWorkshopsSpeakersSponsors
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TRADING AS A CAREER
Complete IndependenceChallengingInstant performance feedback Play a part in the financial markets which affecteverythingAlways in demand if your goodHard Work and Preparation are part of the jobFull Responsibility from early on.
Your nobody·s mail clerk
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W HY INVESTING IS JUST LONG TERM
TRADINGBuy and Hold has led to terrible returns in previousyears
Good in concept
Traditional investment models only work if other market players care about themOverall stock market prices are a function of howmuch money flows to equities.
The thought that intraday trading or even over aweek period stock price movements are random
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AUD/USD
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AUD/USD
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INTRADAY (60 MIN) TOP AND DAILYCHART (BOTTOM)
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D A I LY
GBP/USD
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R A N G E B O U N D E X A M P L E
GBP/USD 60 MIN
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A U D / J P Y
DAILY CHART
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A U D / J P Y
60 MIN CHART
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INVESTING W ITHOUT AN EXIT PLAN
The stock trades against you and you buy moreThe stock trades against you and you hold itThe stock trades against you, panic, then you makeup your exit plan and sell out at the bottom.The stock trades against you and you make theexcuse that I am young and can deal with lossesnow.
Investing without an exit plan is dangerous.´Investingµ sounds good under the premise thatstocks always go up ² Yet this isn·t true
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S & P 5 0 0 I S S T I L L D O W N 2 8 % F R O M I T S P E AK
S&P 500
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S I N C E 1 9 9 0 I S D O W N 7 2 % F R O M I T S P E AK
NIKKEI 225
35k High
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FUNDAMENTAL ANALYSIS
Fundamental Analysis without a methodicalapproach is hard to get consistent resultsWith disciplined rules it becomes often becomesquantitative investing.CANSLIM Method is one of the best strategies outthere for picking strong fundamental companiesand stocks
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TRADING SKILLS
Pattern RecognitionDeveloping your own playbook Making trades that make the most sense to you.
Buying Strong Stocks and Selling Weak stocks willimprove returns substantially regardless of the overallmarket.IndependenceTechnical trading is consistent though what works today
may not necessarily work tomorrow.These skills will not only play a role if you want to becomea trader, but also help you do something with your money when you get a job.
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RECENT MARKET ANALYSIS
Recently the correlation between stocks in the S&Pwas around .9Meaning that regardless of the vast differencebetween stocks the majority of them moved withthe marketAlpha is hard to produce with all the Quants andHFT players in the market.
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Q UESTIONS?
Send us an email at [email protected] or meat [email protected] out the websitehttp://www.pitt.edu/~sorc/trade/
Trading Pitt Logo?Interested in Opportunities?