STREET DOGS: 'Small' is not always better
Michel Pireu: The only advantage to being small is being able to get out of the way
There are those who will tell you that as a "small" investor you can beat the institutional fund managers. "Instead of empowering multibillion-dollar money managers, empower yourself," advises Tom Sosnoff at tastytrades, "because you can get small enough to do virtually anything." While it might be true that there are advantages to being "small", as the following extract from a report by Credit Suisse economists Hiromichi Shirakawa and Takashi Shiono shows it’s hard to imagine how simply being "small" could compensate for the sort of stuff the "big boys" bring to the game. Wavelet transforms were invented for the purpose of analysing time series data for which the mix of frequencies (power spectrum) may vary and have come to be used in the fields of physics and engineering.One key application of wavelet analysis is identification of intra-cycle location, or distance to the next peak or trough. Applied to data for the USD/JPY, this should provide us with some indication as to how lon...
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