Rocko Chen
Articles by Rocko Chen
September 20, 2009
Regardless of school rating, smaller classes often have more to offer students.
September 05, 2009
According to Warren Buffet, new technologies, esoteric products offer little real value then therefore more risk.
August 27, 2009
Outsourcing requires large risks, sometimes hurting business performance in the long run. Those in the industry must voice these concerns for management to think twice about moving jobs over seas.
August 20, 2009
An expanding vocabulary contributes to improved ingenuity
August 07, 2009
A general theory on how political parties had historically applied socialism to climb into power.
July 25, 2009
Some weaknesses and indirect suggestions from stochastic stock pricing model.
July 17, 2009
The banks' reluctance to offer loans financing stock investments point to the obvious conclusion that actual risks remain sky high.
July 10, 2009
Relative arbitrage depends on both cointegration of data sets and fundamental economics to pull through.
June 23, 2009
Historical yield high or low implies immediate future price moves. This article explains basically why and how it works.
June 08, 2009
Opposed to academic probability theory, I suggest that random distributions hold predictable elements, backed with some empirical evidence.
June 03, 2009
I ran into a few articles on "The Lazy Way to Investment Success" focusing on holding various mutual funds, this "way" will invariably end badly for largely the excessively high fees and credit risk. OK, let us backtrack a moment and remember the actual risks of "buying, holding, and hoping".
In...
April 19, 2009
Fallibility defines humanity, it explains why nothing ever goes according to plan, and why we must strategically allow room for error pursuing happiness, success, and all that jazz. "Anything that could go wrong, will go wrong…" Murphy´s Law never explained why, well I just did.
Expecting ...
April 01, 2009
The E-Prime language format compels us to think more deeply with simple changes.
March 21, 2009
Using historical prices for forecasting offers little to no value.
February 14, 2009
16.3 Trillian GBP worth of toxic assets still remain at EU banks. This article looks for potential opportunities for profit from it.
February 07, 2009
Support vector machine 1-week direction predictions of NIKKEI225 shown superiority over Random Walk, Quadratic Discriminant Analysis, and Elman Backpropogation Neural Network methods.
January 09, 2009
Barak Obama will not likely make any significant changes. Instead, we should simply focus on what we do know and stop wasting time speculating what he might do.
January 03, 2009
Credit ratings should not be applied to assess realistic risks but instead general sentiment of dumb money.
December 15, 2008
Statistical arbitrage in real estate investments at this point remains possible in theory; it just requires some legwork and a complete understanding of the financial markets. It does not matter if the collective real estate market declines further or experiences unexpected growth, this could be doa...
December 02, 2008
This article looks at why only market neutral funds may offer added value for the investors.
October 22, 2008
The following statistics offer mean S&P Index returns and associated skew values for each trading day within the 3rd week of the month (AKA Option Expiration Week), for the decade starting from 1998. 1 While you should not anchor on these figures entirely, they do provide a pretty good picture of ho...
October 16, 2008
My experience at an Imagine Cup conference reflected that of the point by Taleb regarding people focusing on pennies instead of the dollars.
October 13, 2008
Instead of worrying about inflation or deflation, we could focus on making wise investments regardless of this uncertainty.
October 09, 2008
Improving and creating a sound investment strategy or business model requires one to address its weaknesses.
October 07, 2008
This piece entails some advice derived from some personal experience trading the markets.
September 27, 2008
Jim Cramer made a very bearish comment, implying that the stock market will likely rally once analyzed.
September 21, 2008
ANZ may face larger-than-expected losses as a result of high risk credit derivative positions.
September 01, 2008
Lowering interest rates may hint a decline in the Australian economy, and that of the stock market.
July 24, 2008
A way to hedge against fundamental bank risk, so that capital preservation occurs even if the involved bank falls.
July 17, 2008
A look at statistical moments of real stock returns and how traders/investors could benefit from the understanding.
July 04, 2008
As value of money increases while supply lowers, deflation kicks in; it gives consumers higher purchasing power, had helped America overcome the Great Depression, why the bad sentiment? This scenario sounds great for the average investor, especially those who have little hedge over exchange rate ris...
June 15, 2008
Despite having no college education, Lenny Dykstra managed to grow his wealth after retirement from baseball. How did he do it?
May 25, 2008
Many professional traders engage in a single or couple of securities exclusively, the logic breaks the myth of portfolio diversification.
May 12, 2008
In 1979, Victor Niederhoffer turned $50K into $20Million within 18 months, and became one of the first traders known for quantitative perception. Like any other business, his performance has had ups and downs throughout the decades, and perhaps we could all learn something from the experiences.
...
May 05, 2008
Several fundamental, logical grounds make long term stock investments more viable than real estate. As investments initiate with general objectives of selling later down the line for an increased amount, added value means everything.
Added Value Explained
Potential buyers in the future, espec...
May 03, 2008
As the city of Vallejo, Ca, faces bankruptcy; investors must prepare for some potentially significant economic changes.
April 29, 2008
A brief explanation of how arbitrage works in the financial markets.
April 24, 2008
I talk about a way to hedge against risks involved with currently available investments in NZ.
April 23, 2008
NZ mutual funds do not offer fair deals for the public.
April 19, 2008
Applying financial news toward profitable trading/investing.
April 16, 2008
Market neutral, pair-trading strategies allow traders to reap profit off stock markets regardless of directional forecasting. It embraces simple principles, though the reward does not come easily.
Basic Tenet
Some institutional traders consider Pair-Trading a type of statistical arbitrage (like...
April 12, 2008
Writing call options to increase returns and lower risk. A stripped down guide.
April 09, 2008
Forex trading is a losing game for most who apply the small brokerage outfits.
April 02, 2008
Many stock traders operate with a negative expectancy, and learning not to repeat their most notable mistakes could help new traders get a head-start in the game. Any one of the mentioned slip-ups would interfere with potential successful.
Insufficient Prerequisite Education
Developing succes...
March 31, 2008
This article discusses specific aspects hurting many trend-following investment strategies.
March 28, 2008
As mathematicians convened for another Auckland gathering at AUT, the beautiful day went by hastily. More than an academic forum, the prominent, striking men and women shared distinct fragments of highlighted lives.
Origins
Most of them have spent life times researching, teaching, and traveli...
March 28, 2008
An abstract on risk management and reward maximization of money market instruments.
March 26, 2008
This article explains how the crowd is usually wrong, and the current negative sentiment provides a higher probability of near term rally in the markets. The why's and how's are explained.
March 25, 2008
A brief opinion that success in business today requires one to create periods of no competition.
March 24, 2008
This writing proposes the notion that diversification does not actually lower risk in today's environment, but in affect limit potential profit.
March 23, 2008
This article reveals a common industry practice toward the higher educated target market. The said sales tactic is unacceptable and consumers should become aware.
March 23, 2008
This article explains why markets will likely climb in the years of presidential races.
March 22, 2008
This presents an assertion of increased volatility in the financial markets today due to unprecedented growth in hedge funds and their associated influences.
March 22, 2008
This is a persuasive writing arguing that betting on falling stock prices could potentially result in larger returns than conventional buying and holding.
March 21, 2008
This writing uses the birthday paradox as an argument that unexpected anomalies should be expected as part of adequate risk management.
March 20, 2008
This writing reevaluates work and general happiness, along with past misconceptions.
March 20, 2008
Some reflections of bold sales schemes to help readers become wiser consumers.
March 19, 2008
This article elaborates on the incredibly lively social interactions at the conference of my experience. The experience was not just educational, but surprisingly fun and pleasant.
March 18, 2008
This article means to inform the public of inherent risks involved with single stock positions that the typical investment adviser may avoid discussing.
March 18, 2008
This article looks to define "abundance", then suggests some simple concepts to achieve desired results along with growth of asset that the average reader can uttilize.
Articles by Rocko Chen From Other Sources
April 12, 2008
published in The Mathematical Think-Tank