Probability Distribution Of Stocks

The TRUE Probability Distribution of Stock Market Returns

The goal of a trader is to best possibly position him/herself to maximize their chances of winning. To do this, it is crucial that you as a trader understand the underlying probability distributions of stock market returns. Without having a good understanding of price distributions, you might base your entire trading approach on completely flawed assumptions. This can have detrimental consequences and is one reason for financial crashes and crises. The purpose of this article Read more

Is The Stock Market Predictable

Is The Stock Market Predictable? The Random Walk Theory

What does the stock market have in common with random movement? The Random Walk Theory says everything. According to the Random Walk Theory stock price changes happen in a so-called random walk. This means they are entirely random and therefore cannot be predicted in any way, shape, or form. Due to its implications, this is a very controversial theory that has sparked a lot of debates, even among well-known economists and traders. Research studies exist Read more

Efficient Market Hypothesis Wrong

Is The Market Efficient?

A very well-known and controversial market theory is the Efficient Market Hypothesis. It states that markets are efficient which means that all available information is always reflected in an asset’s price. The controversial implication of this would be that it is impossible to reliably beat the overall market because it isn’t possible to find any under or overvalued assets. If this is true, it would make the act of actively analyzing and searching for potentially Read more

ultimate guide to bonds

How Does a Bond Work – The Complete Guide

Bonds can be an excellent investment vehicle. Sadly, they are often misunderstood and thus many investors don’t take advantage of the potential that bonds offer. Even if you aren’t interested in actually trading bonds, it can be of great use to understand the bond market and its relation to other markets such as equities. In this article you will receive an answer to all of the following questions: What is a bond? How does a Read more

ETFs vs mutual funds vs hedge funds

Exchange-Traded Fund vs Mutual Funds vs Hedge Funds

Close to 50% of all US households own some kind of mutual fund shares. Nevertheless, a great deal of these people doesn’t actually understand how exactly their money is being allocated. In this article, you will learn what exactly a mutual fund is and some similar alternatives such as exchange-traded funds and hedge funds. After finishing this article, you should have a much better understanding of what you should be putting your financial future into. Read more

traits of successful traders

Top 7 Traits of Successful Traders

In my opinion, not all profitable traders are also successful traders. You can certainly be a profitable trader without being a good, successful trader. For instance, if you always risk all your capital on every trade, you might be profitable for a while, but you certainly wouldn’t be a good trader. Enough time, however, will separate the profitable traders from the truly good and successful ones. In this article, you will learn what distinguishes a Read more

Do This for 1 Minute After Every Trade and Transform Your Trading!

Imagine you could take your trading to the next level with as little as 1 minute per trade. Wouldn’t that be awesome? If you answered yes to this question, I have good news for you. I will present to you a method to cut out all your bad trades so that you can fully focus on the best, winning trades. This method only takes about a minute per trade. Tim Grittani (Famous for turning $1500 into Read more

stock market statistics

7 Stock Market Stats You Should Know

Throughout the past few years, data has become increasingly important. While a few decades ago, most traders relied on their own discretion and manual analysis, today, the majority of the volume traded in public equities is being traded by algorithms. These algorithms heavily rely on data. It is very likely that data will become even more important in the future. With that being said, how can retail traders incorporate some elements of data science into Read more

trade the news

How To Trade The News – The Truth

Some people consider news essential information for successful trading. However, other people claim that news is nothing but useless noise. So should you ever trade the news and if so, how should you do it? After reading this article, you should have a pretty good idea about the actual role of news in trading. How Important is News Really? There is no question about that news can be a good way to stay updated about Read more

The Strategy Lab

Introducing: The Strategy Lab

I have a question for you. Please try to answer it as honestly as you can: How Well Do You Understand Options Pricing And Options Strategies? To help you answer this question, I have prepared three statements. Make sure to read them and then consider to what extent you agree with them: I know more than 8 different options strategies and their basic payoff behavior. (Agree/Disagree) I know what the Greeks are and how to Read more