A journey of a thousand miles begins with a single step

http://www.amazon.com/Algorithmic-Trading-Winning-Strategies-Rationale-ebook/dp/B00CY5HC0U/ref=sr_1_3?ie=UTF8&qid=1421983375&sr=8-3&keywords=algorithmic+trading Common trading pitfall/Mean-reverting strategy and theory/Trend following strategy/Intra day trading strategy/Risk management are all covered in this book. Really a classics. Must read for everyone who would like to start their trading life.

figure credit: http://www.agmrc.org/ To calculate NPV, usually one will discount cash flow with a fixed discount rate. However, is it reasonable to use a fixed discount rate? Do we have any other rationale choice? Here comes the "Hyperbolic Discounting" which suggests using a time-inconsistent discount rate. For more information, please refer to http://en.wikipedia.org/wiki/Hyperbolic_discounting https://ideas.repec.org/p/cwl/cwldpp/1719.html http://physicsoffinance.blogspot.tw/2011/05/deep-discounting-errors.html