Person similar to a weather forecaster or
astrologer, but not quite so accurate. An analyst is paid to make similar predictions
about future earnings as other analysts. Derivation of ‘anal’ and
‘list’ since that is where most of the earnings estimates come from. See
A sophisticated trading technique whereby
one can simultaneously buy and sell the same financial instrument for a price that realizes a profit that is slightly less
than the costs of doing the trade.
A technique that identifies the best values
for an automated trading system’s parameters to use after one invents a time machine and can go back in time and trade
historically. See Optimization.
A fee charged by a broker for moving a financial
instrument from one customer account to another.
A clever technique invented by brokers that
allows a customer to pay double commissions to purchase a financial instrument that behaves almost identically to being a
put option seller.
Random number generated by a group of analysts
that attempts to predict what a company’s earnings per share will be next quarter.
Person who is forced by regulations to reveal
that they have a serious conflict of interest due to them getting compensated for selling you investment products that they
earn the most commission on rather than the ones that are best for you. See Independent
A person who attempts to explain why financial
instrument prices differ significantly in value and volatility to those derived from calculations of the instrument’s
actual fundamental value. Compare with Technician.
Independent Financial Advisor
Less well compensated version of a financial
advisor. See Financial Advisor.
Initial Public Offering (IPO)
A scheme whereby those with the most information
(investment banks) attempt to sell part of a company to those with the least information (the public) using a compensation
model that rewards the investment bank and company more the higher the IPO price is.
Monte Carlo Simulation
A technique that demonstrates what an achievement
it is for a trader to generate actual trading results that are consistently worse than random.
A financial instrument that aims to match
the performance of a theoretical index by buying exactly the same instruments that constitute the index and then deducting
large fees to pay the mutual fund managers, for marketing the fund, and paying other associated expenses.
An advanced technique that identifies the
values for an automated trading system’s parameters that define the version of the system that is least likely to make
a profit in the future. See Back-fitting.
A financial instrument that gives the owner
the right, but not the obligation to wait until expiration before admitting he has been scammed. See Option Writer.
Person who exchanges a small guaranteed profit
immediately, for a chance of a huge loss in the future. See Option.
The time immediately before an IPO that effectively
prevents the public from obtaining information that may give them some idea of the true value of the company for sale.
A person who attempts to explain why future
financial instrument prices differ significantly in value and volatility to those derived from calculations of the instrument’s
actual technical value. Compare with Fundamentalist.