Stock Market Stories

Chris DeMuth Jr. of Rangeley Capital talks finding mispriced bets amid the COVID-19 crisis, and generally how to "sift the world" for opportunities, both within and without the markets.

My second guest is Logan Kane, author of High Finance: The Secrets Wall Street Doesn't Want You To Know and frequent SeekingAlpha contributor. Logan is a quant, applying econometric models to financial markets. I originally came across Logan when he broke a story on Robinhood's payment for order flow practices, which was picked up by Bloomberg and CNBC. In this episode, we talk about: Starting as a bottom up value investor and becoming a quantitative investor How to start modelling market behavior Practical things retail traders and investors should know about market microstructure Logan's Robinhood story Thinking about time frames in trading How his strategy is based on inversing retail investor behavior Links mentioned: High Finance: The Secrets Wall Street Doesn't Want You to Know Logan's SeekingAlpha page Robinhood Is Making Millions Selling Out Their Millennial Customers To High-Frequency Traders The Robinhood High-Frequency Trading Scandal: The Plot Thickens What Time Frame Should You Use When Trading Card Counting Meets The Stock Market: A Statistical Model For Predicting 1-3 Month Returns How Hidden ETF Transaction Costs Make Billions For Market Makers How Option Pricing Theory Can Make You Extra Money In Cannabis Stocks And IPOs Read This If You're Thinking Of Buying Put Options On Tilray An Overlooked Key To Investing Success: Market Microstructure

My first guest is ex-proprietary day trader Peter To, who now trades independently. I first found Peter through the Chat With Traders podcast and his amazing blog which can be found at ptotrading.blogspot.com.   In this podcast we talk about:   A recent study which asserts that consistent day trading profits are near-impossible. Trading with "the world's worst prop firm" during Hurricane Sandy Peter's thoughts on high-frequency trading's affect on the markets he trades Why 1990s prop trading was the golden era of trading. How traders can develop techniques outside of 'vanilla' technical trading strategies Is shorting parabolic penny stocks a 'crowded trade?' Modelling market behavior to refine your trading edge How Twitter has become a digital prop desk Updates on two trades Peter has blogged about   Links mentioned:   Day Trading for a Living Study? Peter's blog Peter's twitter Peter's CETC Trade: Being stuck short a stock and still being charge borrow fees Peter's great post on why he thought buying the dip in the S&P in December 2018 was a home-run trade Peter's interview with Chat With Traders Peter's favorite trading book: Dark Pools - The Rise of Machine Traders and the Rigging of the US Stock Market  Investment disclaimer