The financial markets generate a lot of number on a per second basis. There are people who have made it a profession to convert this information into trends, buy-sell signals, charts and pivot tables. Over the last 18 years of financial journalism, I have realised that every number has a story to tell. And these numbers as a trend normally never lie. I am forever looking for these trends.
Pravin Chaudhari is a full-time derivatives trader. He buys and sells shares daily based on announcements, results and ratings data of companies. Large institutional traders get all such information on one single Bloomberg or Reuters terminal. Day traders like Chaudhari have to scan scores of news sources, such as newspapers, television, internet forums and company websites, to glean information. Four former Merrill Lynch techies reckoned that the thousands of investors, who now trade on their own through internet-based trading platforms offered by stockbrokers, may buy a product that mines and packages publicly available information into bite-sized packets.
Som Sagar, Mukund Mudras, Jaison Mathews and Abhijit Vedak, techies who worked for the fixed income division of Merrill Lynch, started Heckyl Technologies, which creates analytical information products that embed in the trading platforms of stockbrokers. Now, traders like Chaudhari get tweet-sized news feeds from numerous sources in one small window on their screens. “The system also allows me to understand market sentiments in terms of behavioural patterns of stocks and indices that I can convert into trading calls very quickly,’’ he says.
(This article is excerpted from the latest Forbes India 31 May, 2013 issue which is now available at news stands and book stores. You can buy our tablet version from Magzter.com)