Commodities are basic goods traded in large volumes for immediate or future delivery. Commodities markets deal in metals and soft items like cocoa, coffee, and oil. Commodities are categorized into metals, energy, livestock, and agricultural products
Microeconomics studies individual and business decisions, focusing on supply and demand. Macroeconomics analyzes country and government decisions, taking a top-down approach. Both fields are interdependent and complement each other
Heuristics are mental shortcuts that help make quick decisions. First identified by Herbert Simon in economics. Allows processing limited information efficiently
Compound interest adds accumulated interest back to principal. Formula: A = P(1+r/n)^nt, where A is future value, P is principal. Effective annual rate (APY) shows actual interest after compounding
Thomas N. Bulkowski wrote the book after experiencing career changes and technical analysis challenges. The book was updated in 2005 after the 2000-2002 bear market. The second edition includes 14 new chart patterns and 9 new event patterns
EMH states that asset prices reflect all available information. Market prices should only react to new information. Theory requires specific risk model for testable predictions