High Prices are a Cure for High Prices

SPX on Sep 11, 2021

A Confession of Mistakes and Honest History

Before I carry on the main topic of this article, I want to make it clear that for the past 1 year, I have been trying to project the end of the 13 years bull run but time and again, I was proven wrong. That is the part where you can choose to stop reading because my track record for the past 1 year was admittedly, like shit.

Now, if you will give me a chance, a chance to redeem myself, here’s what happened last year in Feb 2020 and Mar 2020…


My story moving from a technical role to a functional one

Photo by Simon Abrams on Unsplash

I have mentioned before in certain reply to an article that I was a developer and made the conscious move to do a more functional role as opposed to a technical one.

But I’ve never told the story, or the reasons why.

Or whether I have any regrets.

The Story

I graduated in 2009 with a computer engineering degree and took on my first full time job as a technical business analyst. It was a job that requires understanding of software engineering as well as the business. Of course, the former…


It is now a platform for the professional to use against you

Screenshot of WallStreetBets Cover Picture from the Reddit Forum

The retails thought that they have triumphed over the professionals when WallStreetBets uncovered stocks that are over-shorted and the mass buying effects caused one of the most impressive short-squeeze in modern financial history that almost brought down a giant hedge fund.

However, the triumph would prove to be short-lived and if there is a reason why, I would declare that to be the forum’s own success that would eventually transformed it from a tavern of everyday heroes, to that of a mass grave for the naive.

The simple…


10 Things You Would Expect From a Technical Lead

10. Respect Others

Photo by Mimi Thian on Unsplash

In our course of work in the technical sector, most likely than not, a technical lead plays a huge role in the development and the success or failure of a technical project. And I’m sure that more than a fair share of you have encountered “tech leads” that are less than desirable.

Having played the role of a developer, a technical leader, a technical business analyst, as well as an interviewer, I guessed I would be mildly qualified to give you my 2-cents on what we would expect…


Selling your order flow is akin to telling the buyers of this information how to F**k yourself

Photo by Christian Erfurt on Unsplash

Robinhood may advertise itself as the broker that promotes more financial participation and giving the common people a better chance to succeed in the market with their $0 commission. While it may sound great, ever wonder why the professionals steered clear of it?

Let me tell you the simple reason: Robinhood makes money by selling your order flow. This simply means that your orders, along with the hundreds of thousands of people who use Robinhood, are now known to the rich players (e.g…


It won’t end well for investors rushing in now.

When the GameStop Saga came to light earlier this year, there was a frenzy of talking on social media and also within my personal group of friends. Even some personal friends of mine who were professional traders were dragged into the hysteria. For the last point, needless to say, I was disappointed.

Yes, I know that people on the ground, the main street, the retails, were feeling elated when a professional victim, Melvin Capital, fell from grace and sustained more than 50% loss on this single stock.

There was also huge…


Money Management and Risk Management are considered soft edges

Recently, I was asked by a friend who is doing systematic trading whether I consider “money management” as an edge. He had read online that some considered it not as an edge. But I disagree. And that is the reason for this article.

Edges

Photo by Umberto on Unsplash

I think when most people talk about edges, they do not really define them properly. It really depends on who you are talking to. I had worked with Quants who only consider strategies where the probability of the strategies themselves are above 80% and those who will take…


We could be entering into the worst bear market of our generation

I am not an American, but I rejoice with the world when Joe Biden was elected. Like many others, I kept refreshing on the counts and why Nevada’s wasn’t moving. On 9th Nov 2020, Monday, when it was confirmed that Trump had lost the White House, the market cheered and moved up in a straight line.

Then it moved down in almost the same fashion.

As a market participant and having worked as a professional trader in a macro hedge fund and proprietary trading firm, I am calling…


A single class and a single technique which unlocks my ability to write.

Photo by Aaron Burden on Unsplash

A Little Background: I was a Bad Writer

English wasn’t my native speaking language when I was young. I was born into a Chinese speaking family. In fact, during my primary school days, I failed my English composition so consistently that I was placed into a special after-school writing class that only a selected few in the cohort could “honorably” qualify for.

The inherent fear of writing an English essay was real. I never knew if what I wrote will come back with a passing grade. …


A couple of alternative data to gauge a company’s medium-to-long-term health.

A Coffee Chat

I was catching up with an old friend who is currently running a business. We used to work in the same bank working on treasury solutions. At one point in time, we spoke about trading and investments and he mentioned a particular stock that he is interested to put a buy order.

Being actively involved in the financial markets, I was naturally curious about the reasons this particular stock caught his attention: there were some fundamental reasons and also a relative value play against similar companies in the same…

YuChao Sng

Business Analyst | Data Analyst | Scrum Master | Programmer | Database Developer | Trader | Banking & Trading Systems Expert

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