Ted Bauman has a weekly column in Banyan’s FREE daily newsletter, The Sovereign Investor Daily. He joined the Banyan Hill Publishing as an editor in 2013 and has worked to date, securing his own pieces which include The Bauman Letter, Smart Money Alert, and Plan B Club. Ted has channeled his writing career to address asset protection, international migration issues, and low-risk investment strategies and privacy. He has had the opportunity of being published in several international journals which include Small Enterprise Development and Environment and Urbanization, and the Journal of Microfinance. He has also been partially involved in the South African Press with prominent publishing firms including New Internationalist, Cape Times, Mail and Guardian, and Cape Argus. Bauman co-authored a book with his father, Robert Bauman, Where to Stash Your Cash.
Ted has addressed several national financial issues, an example was the reason why the Dow Jones Industrial Average (DJIA) encountered a loss of its value drastically, with about 508 points. A similar drop of the same intensity today would be approximately 6,000 points. During that time, traders had no alternative but to watch from afar as waves after waves of selling ravaged the index negatively. With each increase of wave, every loss seemed bigger and faster than the previous one. Since none of them had experience with selling, there was not much to be done at the moment. By 1987, market technology had just been in its infancy. Ted further explains how this new realization of computerized trading has played a major role of uplifting the market.
According to Bauman, stock markets are controlled and managed by computers, which handle trillions of dollars. There are two alternatives to go around the issue, one of them being the incorporation of automated algorithmic systems. Big institutional investors have embraced this method especially because of the reduced costs and time-wasting it comes with. This reduces the friction of decision-making which is a fundamental matter in investing. With this method, trades occur in as fast as milliseconds while handling million, and bearing tiny profits that collectively add up to be a huge sum. The other alternative is using the algorithms in trading like the Smart Money and Alpha Stock Alert, both found in Ted’s Bauman Letter.
According to Ted Bauman, logarithms are manipulated such that human emotions in trading are eliminated; the only human role in trading that proves to be a challenge at times. In this system, a zen-like commitment is made to let the rules take control of the shots. This has been approved by the Empirical back testing which affirms that the system is a true market-beater, showing magnificent gains of up to 600%.