Horace Elrimron

A longer ring finger than an index finger denotes a more successful financial trader, British researchers said in a study published in the Proceedings of the National Academy of Sciences.


Previous research found that the length ratio between the index and the ring finger, termed 2D:4D, is a measure of prenatal exposure to androgens (male hormones) that can affect the developing brain, giving it increased confidence and reaction times.


University of Cambridge researcher and chief author of the study, John Coates, said androgens improve the concentration and reflexes needed in high-end financial trading. In their study, researchers measured the fingers of 44 male traders in London, UK, who were engaged in trading that involved rapid decision-making and quick physical reactions.


They then correlated finger length ratio to the traders’ profits and losses during the preceding 20 months, concluding that a lower 2D:4D ratio predicted higher long-term profitability and longer careers in the business.


In finance, a trader is someone who buys and sells financial instruments such as stocks, bonds and derivatives.  Traders are either professionals working in a financial institution or a corporation, or individual investors, or day traders. They buy and sell financial instruments traded in the stock markets, derivatives markets and commodity markets comprising the stock exchanges, derivatives exchanges and the commodities exchanges.


In finance, a trading strategy is a predefined set of rules for making trading decisions. Traders, investment firms and fund managers use a money strategy to help make wiser investment decisions and help eliminate the emotional aspect of trading.  A trading strategy is governed by a set of rules that do not deviate.  Emotional bias is eliminated because the systems operate within the parameters known by the trader.  The parameters can be trusted based on historical analysis and real world market studies, so that the trader can have confidence in the strategy and its operating characteristics.


When developing a trading strategy, many things must be considered: return, risk, volatility, timeframe, style, correlation with the markets, methods, etc.  After developing a strategy, it can be back tested using computer programs.  Although back testing is no guarantee of future performance, it gives the trader confidence that the strategy has worked in the past.  If the strategy is not over-optimized, data-mined, or based on random coincidences, it might have a good chance of working in the future.


In electronic financial markets, trading system, also known as algorithmic trading, is the use of computer programs for entering trading orders with the computer algorithm deciding on certain aspects of the order such as the timing, price, quantity of order.  It is widely used by hedge funds, pension funds, mutual funds, and other institutional traders to divide up a large trade into several smaller trades in order to manage market impact, opportunity cost, and risk.


Computerization of the order flow in financial markets began in the early 1970s with some landmarks being the introduction of the New York Stock Exchange’s “designated order turnaround” system.  REMOVE


Recent years have seen a surge in the growth of automated trading. The global electronic markets continue to attract more volume, as firms worldwide utilize trading automation at an increasing rate. This allows traders to deploy complex strategies that would be impossible to execute manually.


Today, using information and trading platforms has become a de facto requirement for successful trading in the financial markets.  Their advantages as compared to conventional trading schemes include, for example, an unprecedented speed of processing and delivery of information to end users, the level of integration with data providers, and a wide array of built-in technical analysis instruments.


Various software components embrace the entire target sector of the market from analytics and forecasting to complex trade and administration. The components of a trading platform provide its clients—brokers, dealers, traders, financial analysts and advisors—just the service they need at the very moment they need it, from immediate round-the-clock access to information of concern by means of mobile devices, to multi-move trading operations in the major client terminal.


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