Posts

options adjustment strategies
Apr 12

Options Adjustment Strategies

When trading, things sometimes don’t turn out to go entirely according to your plan. But what do you do if this happens? Do you sit tight and wait, close the trade or do something else? In this article, you will learn about a few options adjustment strategies that will help you deal with struggling options trades. These adjustment techniques will help you minimize your risk without eliminating the potential for profit. Options Adjustments Video Guide Read more

options assignment explained
Apr 02

What is Options Assignment & How to Avoid It

If you are learning about options, assignment might seem like a scary topic. In this article, you will learn why it really isn’t. I will break down the entire options assignment process step by step and show you when you might be assigned, how to minimize the risk of being assigned, and what to do if you are assigned. Video Breakdown of Options Assignment Check out the following video in which I explain everything you Read more

Beta Weighting Explained
Apr 01

What is Beta Weighting & Why You Should Use It

Beta weighting is a fundamental risk management technique that is commonplace in every professional trading institution. But sadly, many retail traders shy away from it because, at first glance, it does seem complicated. My goal with this article is to change this. There is a reason why so many professional traders use beta weighting on a daily basis! After reading this article, you should be able to fully understand this reason and apply beta weighting Read more

Probability Distribution Of Stocks
Mar 20

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
Mar 11

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
Mar 02

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
Feb 25

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

how to learn algorithmic trading
Jan 10

How to Learn Algorithmic Trading Fast and Easy

In 2010, it was estimated that over 80% of the volume in the public equity markets was traded algorithmically. Furthermore, out of the best performing hedge funds, a very large percentage rely on algorithm-driven trading. This list includes: Bridgewater Associates, the worlds largest hedge fund, that manages about 150 billion US Dollars AQR Capital Management, the second largest fund with $70 billion under management Renaissance Technologies, the third largest hedge fund, Two Sigma Investments, the Read more

Complete Trade Entry Guide
Jan 08

The Complete Trade Entry & Exit Guide

One of the worst mistakes beginning traders make is to not pay enough attention to their trade entries. Neglecting the importance of a good entry and exit can make a huge difference to your bottom line. In this artcile, you will learn everything you need to know about opening and closing trades. Video Lesson First of all, make sure to check out the following video lesson in which I cover the most important points of Read more