Trading @ BYOB Party in November 2017 (Part 4)
What’s unique about the BYOB Parties we hold is the variety of books that we come across. For instance, Rahul and Anand both got books on trading, something that is absolutely Greek to me.
Rahul got a book called Flash Boys where Michael Lewis tells the story of high-frequency trading firms. I looked up the wiki to understand what this phenomenon is: “In financial markets, high-frequency trading (HFT) is a type of algorithmic trading characterized by high speeds, high turnover rates, and high order-to-trade ratios that leverages high-frequency financial data and electronic trading tools.” Rahul simplified this definition and threw light on the reality that this kind of trading is still in early days and quite actively practiced in Bangalore and Gurgaon.
Anand spoke about a book called Trading for a Living: Psychology, Trading Tactics, Money Management by Dr. Alexander Elder, a doctor who failed several times before becoming a full-time trader. Elder talks about the three Ms- Mind, Method and Money. An understanding of psychology is an integral part of making the right observations, finding the right entry and exit points and making profits.
More books in Part 5.