Tag Archives | news

Trading During Scheduled News Events

Last week, The U.S. Department of Labor presented the monthly update on nonfarm payrolls. This would be an example of a scheduled news event. This may come as a surprise to some of you, but did you know that Apiary usually discourages trading during scheduled news events? It’s not necessarily bad to trade during these events, but here is a couple of reasons behind our thinking:

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  1.     Spreads widen:  The cost of trading in the form of spreads increase during scheduled news events due to the expectation of volatility and risk; liquidity providers will widen the spread to mitigate risk.
  2.     Slippage increases:  It takes time for a quote to be sent from the liquidity provider, received by Alveo, and then have a trade sent back to the liquidity provider. The chances of slippage increase even more with the volatility of a news event.
  3.     Frequent whipsaws:  The initial reaction to a news announcement is not always right–we’ve all been warned about the consequences of first impressions– and markets can change direction many times before the full meaning of the news is digested.
  4.     Lack of liquidity:  Sometimes trades may not trigger due to a lack of liquidity during scheduled news events.
  5.     Hardware issues:  The volatility, along with the pace of data, during news events can put extra strain on your hardware–leading to a slowdown in performance or even malfunctions during a news event.

If you choose to trade during scheduled news events, it’s important for you to recognize the challenges associated with this type of trading and be willing to adjust for the probability of increased risk. Keep these points in mind, and as always…
Happy Trading!

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January Wrap-up — Investor Profile, Traders’ Summit

Well, this is been something of a power month for the Apiary Fund, and we couldn’t be more anxious for what’s coming up! As a part of our January wrap-up, let’s take a look at our biggest headline:

 The Investor Profile

An early release of the Apiary’s Investor Profile was actually announced in December, and it’s been a huge hit! This month we extended beyond Apiary associates and launched the Investor Profile to the public.

As our traders have taken the personality test, it’s been interesting to see the many different personalities that have all come together to form this great community. And it hasn’t just been beneficial for us! The Investor Profile has provided our community of traders an opportunity for serious introspection and trading system adjustment. The new Investor Profile can be found here.

As for what’s coming up, I hope you’ve marked the Winter 2013 Traders’ Summit in your calendars! The three-day event starts on February 25, and there will be plenty of Q&A, so come prepared with any questions or topics you want to discuss with Apiary’s instructors and risk managers! There will also be some live trading sessions and training activities! Visit the Traders’ Summit site to learn more and reserve your seat!

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Apiary Fund – Does your Personality Affect Personal Investing?

Yes! There are so many variables to investing; often it is difficult for the average investor to know where to begin. To make it easier for investors to understand their personal investing type, Apiary Fund launched its Investor Profile.

The Investor Profile helps traders identify their individual strengths and areas for improvement when investing or trading. The personality assessment helps investors recognize natural internal characteristics either helping or hindering financial success.

The Investor Profile started out as a project aimed to identify what makes an investor successful. We quickly realized that every investor is different and success comes when you can identify your strengths and weaknesses and then play to them.

Motivation, confidence, commitment, self-esteem, reasoning, and emotions are all contributors to the inner qualities influencing your ability to make investment decisions.

The Investor Profile determines the investor’s personality through 28 questions that have them select one of four words with which they most and least identify. Each investor receives a primary and secondary personality type that will help identify their overall profile.

It focuses on four personality types of traders:

  • Aggressive – Quick to enter a trade, but may exit quickly when a loss appears
  • Intuitive – Relies on emotional intuition to get in and out of trades
  • Analytical – Analyzes every possible variable before taking action
  • Methodical – Likely to trade on a system, not much regard to gains and losses

There is no such thing as a ‘bad profile’ for an investor. The Investor Profile simply identifies characteristics that people should know about themselves before they invest. After the assessment, the investor can see traits they may need to adjust and how they might respond to market changes.

After getting the results of the Investor Profile, participants have the option to obtain an eBook that goes into more depth about each of the 16 possible profile personality types. The additional information includes areas such as how you view yourself, basic desires and motivations, behavior under pressure and possible areas of improvement.

Author: Shawn Lucas |

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