Tag: Portfolio Management

passiveindexfundinvesting
Sep 27

Index Fund Investing for Beginners

99% of actively managed US equity funds have underperformed their respective benchmark. If wall street professionals with decades of experience fail to beat the market, what chances does that leave retail investors such as you and me? If we can draw one conclusion from this statistic, it is that consistently beating the market is very hard. Therefore, most people would be much better off if they simply invested in the market itself instead of any Read more

hedging with options
May 24

Ultimate Guide to Hedging with Options

Hedging your investments is one of the best ways to systematically decrease your risk and thereby increase your risk to return ratio. But when hedging your portfolio, there are certain things you have to look out for. In this article, you will learn whether or not you should hedge your portfolio and two of the most effective approaches to hedging with options. Why Hedge A hedge is a position that was opened to offset risk. 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

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

ETFs vs mutual funds vs hedge funds
Nov 16

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

RISK MANAGEMENT BASICS
Oct 01

Risk Management Basic Course: Trading Risk Management Techniques

Successful trading is not possible without good risk management. Risk management is probably one of the most important things when it comes to trading. But sadly most traders fail  to do this correctly. This is the main factor that distinguishes the 90% of losing traders from the winning ones. No matter how good a strategy is, with wrong or no risk management it is doomed to fail. Basic risk management is very simple but can Read more