1. Brain Teasers
You have 8 red and 16 blue socks. There’s no light in your room, so you have to choose your socks in the dark. What’s the minimum # of socks you need to choose to ensure you have at least a matching pair.

2. Answer
Three
Two socks can be different, but a third must match one of the first two

3. Announcements Upcoming Presentations:
Economist Stephen Roach on Thu 12:30
Derivatives
Upgrade Capital Trading Competition

4. Market Update: The Macro View

5. Quantitative Finance Society
Anatomy of a Trade

6. Anatomy of a Trade Trade Thesis Trade Execution Managing Risks
Exiting a Trade

7. Trade Thesis
Bottom-Up vs. Top-Down
News
Catalyst
Time Horizon

8. Trade Execution
Pick the right instrument or asset class to express your view
Isolate your trade thesis
Long
Relative Value
Hedging

9. Trade Execution Picking an optimal entry time Technical analysis
Understanding price and volume
Momentum vs. mean reversion
Understanding your catalyst
Upcoming news
Efficient markets

10. Managing Risks Trade Order Types Risks Affecting your Trade Thesis
Market Order, Limit Order, Stop Order
Stop-Loss Order
Risks Affecting your Trade Thesis
Market Risk, Interest Rate Risk, Credit Risk
Political Risk, Currency Risk
Idiosyncratic Risk

11. Exiting a Trade Watch your thesis and catalyst Capture profits
Technical analysis
Discipline: stick to your thesis

12. Questions?