It feels great to make money in a bear market. It’s not about schadenfreude, but more about mastering the markets. So, how do you go about making money in a bear market? In this article, we indicate how to make money in a bear market with two simple steps. You make money in a bear…
We are looking for people who can write about trading, and preferably also can do backtesting. We mutually agree on pay. We would also like to hire coders for any platform or language, except Amibroker (which we already have covered). Are you good at making social media accounts grow? Contact us! Please drop us a…
Do you want the convenience of stock trading and at the same time enjoy the diversification benefits of mutual funds? You should consider trading ETFs. ETFs combine the benefits of both types of investments, providing an easy and inexpensive way to build a diversified investment portfolio. Want to know about ETF trading SPY? An exchange-traded fund…
Many trading indicators are available to traders. One of them is the DeMarker indicator, which was named after a prominent technical analyst Thomas DeMark who created it. The DeMarker indicator, also known by the abbreviation “DeM”, is a technical indicator that measures the demand for the underlying asset. It compares the most recent high and…
Would you like to become a better trader? Or would you like to improve your trading? In this brief article, we recommend 5 steps that can instantly improve your trading (and investing). Step 1: Backtest Readers of this blog should be no surprised that the first step we recommend is to start backtesting. How do…
The US has two main political parties, with different ideologies and policy directions. It is expected that the party that controls the White House and Congress can have a huge impact on equities markets. But what has been the election day performance in the stock market? What has been the performance after election days? As…
The strategy of using other people’s money to trade is by no means recent. In fact, leverage is popularly used in stock and forex trading, particularly in a bullish market. Leverage can come in various forms, such as taking out direct loans or borrowing from the broker. Regardless of its form, the appeal of using…
We have in a number of Tweets, posts, courses, and articles mentioned that the stock market offers the “lowest-hanging fruit” in trading. The reason is simple: We believe you can develop more robust and profitable trading strategies in stocks than in any market, and forex should mostly be avoided. One of the markets we find…
Volatility and bear markets are related: volatility “always” picks up when the market goes down. Is this good or bad for a trader or investor? Should you buy or sell stocks in a volatile market? Let’s find out: Short-term traders should continue doing business as usual. Long-term investors should buy – not sell. Very few…
Seasonal trends in the financial markets are many, and the stock market is no exception. Some months are better than others. What is the weakest month in the stock market? The weakest month in the stock market is September. The second weakest month is June. To find the weakest month, we backtested the S&P 500…
The internet is flooded with courses on how to get rich day trading penny stocks. If the penny stock market attracts you, you might want to have a penny stock day trading strategy. Day trading involves actively buying and selling securities within the same day, trying to capitalize on short-term changes in price. This strategy…
A good short-term trader preys on volatility. However, volatility can also backfire. What day of the month is stocks’ most volatile? The most volatile day of the month is the first. There are a few other volatile trading days as well. We make two backtests on the S&P 500 by using the oldest ETF still…
One of the most important factors in becoming a good trader is to know when you should NOT trade. The art of when to do nothing and just sit on your hands is just as important as anything else. So, what are the worst days to trade stocks (when you should sit on your hands)?…
Volatility can both be good and bad. It’s to your benefit when you get it right, but the opposite when you get it wrong. Thus, it might be of interest to know which day of the week is stocks’ most volatile. Our backtests show that the volatility in the stock market during the trading week…
Candlestick patterns provide plenty of insight into how the price moved in the recent past and how it might move in the near future. Some traders use these patterns to signal trade entry and exit points. While there are many such patterns, only a few may be effective, and one of them is the shooting…
There are certain trading strategies that you can trade based on price action alone. One of them is the HHLL trading strategy. You may be wondering what the HHLL trading strategy is. Here you go: The HHLL trading strategy is a price action (based on price movements) reversal strategy that involves buying an instrument after…
Since the emergence of Bitcoin in 2009, thousands of cryptocurrencies have been created. While many were created to solve a specific problem in the emerging blockchain technology, some cryptocurrencies are just spin-offs of the older ones, and Bitcoin Cash is one such. What exactly is Bitcoin Cash? Bitcoin Cash is a cryptocurrency created from a…
The rise of Bitcoin and cryptocurrencies has offered traders and investors another asset market to play in. One important characteristic of this market is its extreme volatility. To play in the market, one must have a strategy for the frequent market crashes. But what is a Bitcoin crash strategy? In traditional financial markets, a crash…
The commodity market is highly specialized and requires specialists in the game for investment advisory and management. This is where CTAs come in, but who are they? A commodity trading advisor (CTA) is an individual or organization that provides personalized advice and services related to trading in futures contracts, commodity options, and retail off-exchange forex…
The financial market moves in waves — it rises and falls — which is why you hear slogans like “Buy the dip” and “Sell the rip.” Today, we will focus on the “Sell the rip” strategy. What does it mean? Sell the rip refers to a trading strategy that aims to sell an asset (either…
New traders often think that there is that one indicator that would help them make big profits from the market all the time. Unfortunately, there is none, which is why the triple screen strategy was invented to exploit the strong points of different categories of indicators. But what is the triple screen strategy? The triple…
Divergence is a very common signal used by traders to find opportunities in various financial markets, and there are many indicators you can use to identify it. But what is the divergence strategy? In trading, divergence means that the price swings and the indicator movement are not in phase. A divergence signal is generated when…
When it comes to trade entry and exit, most traders tend to think in singular terms — one shot in and one shot out. But breaking the position size into multiple smaller trade sizes and scaling in gradually may offer a better average entry price. Want to know about the scale-in trading strategy? In trading,…
As Warren Buffett rightly said: “You need to be fearful when others are greedy, and greedy when others are fearful.” This perfectly applies to the Rubber Band trading strategy, but what is it? The Rubber Band trading strategy is a simple but powerful contrarian/mean-reversion strategy for trading stocks, which is easy to understand and easy…
In October, we decided to start a weekly report sent out on Sundays (or Mondays) before the US market opening*. This is a “low-cost service” meant to lower the bar to getting access to some of our research and backtests. It costs only 99 USD per year. However, we won’t be as specific as we…
Determining the right mix of assets to help you reach your short-term and long-term financial goals is the key to building a winning investment portfolio. For many years, financial advisors and experts recommend the 60/40 portfolio because of its simplicity and favorable risk-adjusted returns. But given the changing economic situations in 2022 and the 60/40…
Risk is an inherent part of any investment, which is why investors consider risk-adjusted returns when analyzing various investment options. But what is a risk-adjusted return? A risk-adjusted return is a measure of return that compares the potential profit from an investment to the degree of risk that must be accepted in order to achieve…
Considered a part of the technology sector, biotech stocks represent an important part of the Nasdaq market, and they tend to have big growth potential. But what are biotech stocks? Biotech is an industry group that includes companies that research and develop drugs, wearable medical gadgets, and other diagnostic technologies for the treatment of diseases…
There are different ways traders analyze the markets to find trading opportunities. While some use indicators, others study the price movements and the patterns made by candlesticks. One common candlestick pattern is the engulfing pattern. What is the engulfing trading strategy? The engulfing trading strategy is a price action trading method that uses the engulfing…
If you have been trading or just following the gold and silver markets, you must have heard about the gold-silver ratio. What does the gold-silver chart ratio strategy mean? The gold-silver chart ratio strategy is a technique for trading the two precious metals (silver and gold) using the relationship between their prices. The gold/silver ratio…
As a trader, you don’t want to do the hard work of monitoring the screen all the time and analyzing price movements looking for trade setups. This manual way of trading can be extremely hard and even prone to mistakes based on emotional and psychological biases. Moreover, there is a limit to how much data…
It’s a well-known fact that as options expiry day approaches, the biggest-cap stocks with actively traded options tend to witness huge trading volumes (and sometimes increased volatility). In fact, the most important day in stock trading is the expiry day. But what is expiry in options trading? In options trading, an expiry time (or expiration…
For many, the approach is to buy low and sell high. But that is not the case with the 52-week high trading strategy – you do the opposite. What is the 52-week high trading strategy? The 52-week high strategy is a method of investing that seeks to buy stocks that are trading close to their…
Globalization has made it possible for investors to tap into investment opportunities around the world, and as the second largest economy in the world, the Chinese stock market provides opportunities. But what is your China trading strategy? You can also trade Chinese stocks listed on Chinese exchanges, especially the Hong Kong Exchange. However, you would…
Short strategies can add tremendous value to a portfolio of trading strategies, something we have covered in multiple articles (see below). A bear market is mostly good for short term traders, see our post about bear market strategy, but profitable short strategies can add fuel to your returns. Overall, profitable and robust short strategies are…