Today we will introduce you to two main approaches to investing – passive vs. active investing strategy. An investor with a passive strategy will devote less time to the market and can increase capital at a pace in line with…
For many, owning a business or buying expensive real estate is out of the question. An alternative to growing your net worth over time is to invest in financial instruments such as stocks and bonds. In this article, we look…
The Core 4 Portfolio by Rick Ferri is a “lazy” index diversified investment portfolio that allocates assets across 3 asset classes: stocks, bonds, and REITs. These 3 asset classes are divided into 4 categories: U.S. stocks, international stocks, intermediate bonds,…
The 5 Asset Portfolio by Roger Gibson is a “lazy” index diversified portfolio that allocates assets across 4 asset classes: stocks, bonds, REITs, and commodities. These 4 asset classes are divided into 6 categories: U.S. stocks, international stocks, U.S. bonds,…
The Gone Fishin’ Portfolio by Alexander Green is a “lazy” index diversified portfolio that allocates assets across 4 asset classes: stocks, bonds, REITs and precious metals. These 4 asset classes are divided into 10 categories: U.S. Stocks, U.S. Small Cap…
The Simple Path to Wealth Portfolio by JL Collins is a “lazy” index diversified portfolio that allocates assets across two asset classes: stocks and bonds. These two asset classes are divided into two categories: U.S. stocks and U.S. bonds. Thus,…
You are going to learn about the 22 best investment strategies for 2024 in this detailed article. Learning different investment strategies is important for achieving financial success. Investors, who vary in their risk tolerance from conservative to aggressive, are on…
Throughout history, gold has consistently held its position as the preferred global currency. Now, investors primarily acquire gold as a safeguard against economic instability and, of course, inflation. How does gold perform when inflation is high? Gold has famously been considered…
The Seasonal Timing Strategy by Sy Harding is an active, but simple strategy that uses market timings and can be implemented using asset classes and portfolios. Using this strategy, you do not need to be in the market 100% of…
Let’s say you are a wealthy person who has already achieved FIRE (financial independence – retire early) and wants to preserve your wealth. It doesn’t matter what strategy or portfolio you used to achieve wealth because it requires completely different…
What Are the Best Asset Classes to Get Rich? To become rich, you will need to choose a portfolio that will generate the highest possible return with the lowest potential risk. Imagine that you are a poor person who wants…
There are many ways investors try to determine if the stock market is overvalued or not. Some people rely on technical indicators to gauge whether the market is overextended or overbought, while others employ valuation measures like the P/E ratio,…
The relationship between interest rates and stocks is crucial to understand if you are investing in the stock or bond market. How does the S&P 500 perform when interest rates are rising? Interest rates and the stock market have an…
Imagine what it would be like to have invested $100 in the stock market in 1928 and held on to it until today. What’s the growth of $100 invested in 1928? $100 invested in the stock market in 1928 would be…
The majority of investors think long-term. For instance, most US households, excluding the wealthiest 1%, predominantly keep their stocks, bonds, and bills in retirement portfolios. In fact, those not in the top 1% or even 10% of wealth distribution have…
Stocks can be classified into four factors: value, size, investment, and quality. It is well-known that value stocks perform well, and small caps tend to outperform large caps. However, what about the quality factor trading strategy? The quality factor can…
Factor investing targets securities with specific characteristics, called factors, that have historically been associated with higher expected returns. Common factors include value, quality, momentum, size, and minimum volatility. Factor investing is a strategy that uses various attributes of securities, such…
Warren Buffett is for some considered the best investor of all time. Among his many lessons and contributions to the world of finance, one that stands out is the Warren Buffett indicator. This indicator is a measure of valuation for…
After a positive year for stocks, S&P 500 tend to rise 6.75% the next year, not including dividends. If the S&P 500 drops one year, the next year return is on average 12.1%. After a good year in the stock…
What is the optimal asset diversification historically? This is debated, but we came across an interesting study that looks at the best historical asset class diversification models over the last 100 years, all based on statistics and backtests. The main…
I have just finished reading When Genius Failed by Roger Lowenstein. The book is an unauthorized biography of the rise and fall of Long-Term Capital Management (LTCM). For those who are not aware of this incredible story, here is a…
I have just reread Henry Hazlitt’s Economics In One Lesson, published in 1946. This very good, but short book, is about basic economics. This book should be mandatory in every public school. It takes about 2-3 hours to read and…
I believe it’s much more useful to read good books twice than pouring over many books. In this brief article, I explain why you should read good books twice (or rereading multiple times). About one year ago, I moved from…
This weekend I reread The Checklist Manifesto, a book published in 2010, which argues the case for a systematic approach to our daily work as professionals. Below you find arguments for why I believe a checklist is a logical part…
I believe Buffet’s annual letters are an invaluable source of investment knowledge and advice. I recently reread all of them and Lawrence Cunningham’s The Essays Of Warren Buffett – Lessons For Investors And Managers, a book containing excerpts from all…
I guess most readers of my website have read books by management gurus like Jim Collins and Tom Peters, and many more have probably studied Micheal Porter’s Competitive Strategy. But the “problem” with the business theory is that it’s solely…
Morgan Housel has written a short and powerful book about personal finance called The Psychology Of Money – Timeless Lessons On Wealth, Greed, And Happiness. The book might not be related to trading, but personal finance should be a topic…
We believe the best way to learn to trade is by backtesting and trial and error, but you can get valuable input from traders who have been successful. This post is a collection of some of the top motivational trading…
Joe Ritchie was an American investor and Options and Commodities trader that passed away in 2022. He founded Chicago Research and Trading (CRT), a quantitative investment firm, in 1977 and served as the head of Fox Rivers Partners. He later…
Mark D. Cook is an American trader and investor. but is mostly famous for being interviewed in Jack Schwager’s Stock Market Wizards. He worked from his family’s 1870s farmhouse located in East Sparta, Ohio, where he manages his own account….
Mark Minervini is an acclaimed author, technical analyst, instructor, independent trader, and the Founder of Quantech Fund, LP. He has more than three decades of experience in finance and was featured in Jack Schwager’s Stock Market Wizards; conversations with American…
Mark Ritchie is an American investor with over twenty years of experience in the financial industry. He was a Chicago Board of Trade and Chicago Mercantile Exchange Commodities trader. He was one of the original co-founders of Chicago Research and…
Micheal Lauer reluctantly said yes to be interviewed in Jack Schwager’s Stock Market Wizards. Why? Because he didn’t feel he deserved it because his track record was only seven years. However, in those seven years, he managed 72% annual returns…
Monroe Trout is an American investor and hedge fund manager. He was interviewed in the New Market Wizards by Jack Schwager. This article looks briefly at Monroe Trout’s early life and his life as a trader. We end the article…
Michael Masters is an Atlanta-based fund manager. This article looks briefly at Micheal Masters’ early life and his trading career. We end the article by some quotes from his interview in Jack Schwager’s Stock Market Wizard. Micheal Masters’ trading career:…
Ahmet Okumus is a money manager. He began trading in 1992 with $15,000 from his mother. And by 2000, he had turned that into $6 million, that’s an average annual return of 107%. He founded his hedge fund — the…
William Eckhardt is an American investor, commodities and futures trader, and fund manager. Eckhardt was one of the pioneers of quantified and mathematical trading and used some of the theories that later were popularized by Nassim Nicholas Taleb. William Eckhardt…
Lucius Annaeus Seneca, better known as Seneca, was born in Cordoba, Roman Spain, in 4 BC and died in 65 AD. He grew up in Rome as a son of a procurator who was an authority in rhetoric, public speaking…
Poker, Sex and Dying is the title of a book by Juel Anderson published some time in the early 1980s. Some years after publication it was out of print and somewhat forgotten, but accidentally option investor David Caplan found a…
I currently reread Victor Niederhoffer’s The Eduction of A Speculator. I regard this book as one of the best I have ever read. It’s not an easy read, but it completely changed my mindset for the better 20 years ago….
Who are the most successful traders of all time? Your quest leads to icons like George Soros, Jesse Livermore, and more, who have transcended the mere act of trading to become pillars of financial history. Discover the fearless decisions and…
The last trading day of the month offers trading opportunities. This is one of many seasonal trading strategies. Can we make a last trading day of the month trading strategy? The last trading day of the month is a weak…
In this article, we look at the meaning of scalable and non-scalable professions and careers – scalable vs. non-scalable. What you choose might have a significant impact on your life. The word scalable is in Merriam-Webster defined like this:…
I believe it’s important to read, but at the same time being careful what to read. Quality is much better than quantity, and reading twice, in my opinion, is more valuable than reading more. I read The Intelligent Investor for…
Brett Steenbarger, Ph.D., is the author of the famous Traderfeed blog, and he has also published many books on trading psychology. He is a psychologist and a trading coach, who has helped portfolio managers and traders improve their performance. Brett…
Nicolas Darvas (1920-1977) was a Hungarian-American dancer turned self-taught investor. He gained fame for his unique trading method outlined in his book “How I Made $2,000,000 in the Stock Market” (1960). Darvas relied on technical analysis, particularly focusing on price…
Dana Galante is an American investor and stock trader. She is the managing director of Miramar Asset Management, where she helps her investors to balance their long stock investments. Dana was a short seller; she profited when stocks in her…
David Shaw, the King of Quant, was one of the objects interviewed in Jack Schwager’s Stock Market Wizards. How did he make it into the book? Because of his superb annual returns. Schwager’s book is a bit old, published in…
Jeffrey Yass is an American options trader who co-founded the Philadelphia-based Susquehanna International Group (SIG). He has a staggering net worth of 12 billion dollars as of this writing. Jeff Yass’ trading career and life: Jeffrey Yass was born in…
Randy McKay is an American investor with a record 20-year consistent profits — he started from a few thousand and traded that to tens of millions of dollars. Despite his trading records, he is probably most known for being interviewed…
Bill Ackman is a well-known US investor. Who is he? How does Bill Ackman invest? What are Bill Ackman’s investment strategies and philosophy? These are some of the answers we try to answer in this article. At the end of…
David Einhorn is a well-known US investor. Who is he? How does David Einhorn invest? Does he have any particular investment strategy or philosophy? These are some of the answers we answer in this article. At the end of the…
Ray Dalio is one of the world’s most-known investors. Who is he? How does Ray Dalio invest? What is his famous All-Weather Portfolio? What are Ray Dalio’s investment strategies? These are some of the answers we answer in this article….
Gil Blake is an American investor and fund manager and is perhaps most famous for being interviewed in Jack Schwager’s New Market Wizards. By the time of the interview, Gil Blake had an amazing win rate of 134 months out…
Steve Lescarbeau is a mutual fund trader. Jack Schwager’s interview with Gil Blake in the New Market Wizards inspired him to try out the mutual fund timing approach – holding his equity positions while they are gaining and switching to…
Claudio Guazzoni was interviewed by Jack Schwager in Stock Market Wizards. The reason for his inclusion in the book was his track record of 37% over a five-year period without a losing month. Claudio Guazzoni is the founder and CEO…
Charles Faulkner is an American life coach and motivational speaker who is a practitioner of neuro-linguistic programming. Faulkner is known for his work with futures traders and his research on the role of “metaphor” in communication and behavior. However, Charles…
Blair Hull is an American businessman, investor, Democratic politician, and philanthropist. He was interviewed in Jack Schwager’s New Market Wizards, and most of the info in this article is taken from that interview. Jack Schwager’s Market Wizard series is fantastic…
Alphonse Fletcher Jr. is an African-American former hedge fund manager and founder of the Fletcher Foundation. Alphonse Fletcher Jr’s early life and trading career He was born on the 19th of December, 1965 and was raised in Waterford, Connecticut. Fletcher…
This post is about Steve Watson who appeared in Jack Schwager’s Stock Market Wizards. Watson has not been much in the public, and we know very little about his career after the year 2000 (when the Schwager interview was made)….
Steve Cohen is an American investor and the co-founder of S.A.C. Capital Advisors. Cohen is famous for two things: an outstanding track record in managing money and for indirectly being charged with insider trading (his fund S.A.C. Capital Advisors pleaded…
Richard Driehaus was an American investor, fund manager, and philanthropist. He was the founder and chairman of Driehaus Capital Management, LLC, based in Chicago. He is regarded as one of the first turtle traders and was interviewed in the New…
Stanley Druckenmiller is an American investor, hedge fund manager, and philanthropist. He was the former chairman and president of Duquesne Capital, which he founded in 1981. After closing Duquesne Capital, Druckenmiller continued to manage his personal fortune through the Duquesne…
Thomas F. Basso, Tom Basso for short, is an American hedge fund manager. He was interviewed in New Market Wizards by Jack Schwager. The title of this article is the same as Schwager used in his book. This article looks…
Van K. Tharp is an American investor and #1 New York Times bestseller of Financial Freedom Through Electronic Day Trading and Safe Strategies for Financial Freedom: The Definitive Guide to Position Sizing™ Strategies. He is the president of Van Tharp…
Billionaire hedge fund manager Paul Tudor Jones is a famous trader and hedge fund manager. Many negative things happened during the 1987 stock market crash, but one man became very popular and super-rich for his predictions and gains. He would…
Bill Lipschutz is a forex trader and the director and co-founder of portfolio management at Hathersage Capital Management and a former director of Global Head of Foreign Exchange at Solomon brothers. He shot to fame when he was featured in…
Bruce Kovner is an American investor, philanthropist, and hedge fund manager. In 2012, he founded and chaired CAM Capital, which is responsible for investing his private assets, and Kovner Foundation, which oversees his philanthropic activities. He served as Chairman for…
Alexander Elder is an American investor, professional trader, and trader’s coach. He wrote titled, “The New Trading for a Living”, which was regarded as an outstanding book by traders. The book was published in 1993 and has become an international…
Jesse Livermore was a legendary trader and investor that ended his life by suicide after a boom and bust cycle throughout most of his life. One of the most legendary trading books is based on his life: Edwin LeFevre’s The…
Larry Connors is the principal executive officer of Connors Research Group, LLC and Chairman of The Connors Group (TCG). The Connors Research Group publishes daily market insights and commentaries, and it has been listed as one of the 10 fastest-growing…
Larry Hite is one of the pioneers of system trading (computerized trading) together with Ed Seykota. His book, The Rule: How I Beat the Odds in the Markets and Life—and How You Can Too, was named a Wall Street Journal,…
Larry R. Williams is an American Investor, author, and politician from the state of Montana. He has been actively involved in trading the commodities, futures, and stock market for over 53 years and is the only futures trader to trade…
Linda Bradford Raschke is an American trader focused primarily on commodities and futures. She is the president of LBR Asset Management as well as LBR Group. She was the first woman to be interviewed by Jack Schwager in his Market…
Michael Carr is an American investor, a Chartered Market Technician (CMT), writer, and speaker with a successful career in financial service. He is a Certified Financial Technician (CFT), a long-term member of the chartered market technicians association, where he served…
Michael Marcus is a commodity trader reputed to have turned his initial capital of $30,000 into $80 million in less than 20 years. He was the first to be interviewed in Jack Schwager’s series about Market Wizards. In this article,…
Michael Steinhardt is an American investor, philanthropist, and hedge fund manager. He founded the hedge fund, Steinhardt Partners in 1967. The hedge fund made an average annualized return of 24.5% for its client from 1967 to 1995. As a result…
Steve Clark is an American investor, founder, and Head of Risk at Omni Partners, LLP. He served as Director, Head of International Equity Trading, and Director, Co-Head Proprietary Trading at NatWest Markets and Nomura Securities, respectively, between the years 1991…
Rob Hanna is an American investor, the Co-founder, and vice president of research at InvestiQuants. He has been a full-time market professional since 2001 and has been serving as president of Hanna Capital Management LLC since that time. Rob Hanna’s…
Jack Schwager is the managing director and principal of the Fortune Group (alternative asset management) in the US and the UK. He is a board member of Fortune’s research affiliate Global Fund Analysis: one of the top sources for independent…
First-time father at 60, James Beeland Rogers Jr, also known as Jim Rogers, is an American businessman, investor, and financial commentator who lives in Singapore. He is famous for starting the Quantum Fund together with George Soros, and he was…
George Soros’ approach to trading is as a short-term speculator, making highly leveraged bets on the direction of the financial markets based on market and macroeconomic analysis. In other words, Soros bets on the long or short direction of any…
Toby Crabel is a renowned figure in the world of trading and finance, known for his innovative strategies and contributions to the field. As the founder of Crabel Capital Management, he has left a solid mark on the financial market…
Andrew Left, through Citron Research, is a controversial figure who has shaped market sentiments with his short-selling reports. Why do his market moves stir debate? This article examines Left’s approach to short selling, his influence on stock valuations, and the…
The illustrious figure at the helm of Appaloosa Management, David Tepper, is widely recognized for his prowess in the realm of hedge funds. His expert handling of tumultuous economic events, particularly during the 2008 financial crisis, has cemented his reputation…
As the mastermind of Citadel, Ken Griffin has propelled the hedge fund industry forward with cutting-edge strategies and significant market influence. Renowned for financial innovation and a keen interest in both politics and the arts, Griffin’s dynamic leadership has cemented…
Meet Mark Leonard, the strategic mind behind Constellation Software. This article tracks the progression of a tech visionary whose knack for identifying unique software opportunities led to the founding of a company valued in the billions. Without revealing too much,…
Mastermind of the greatest trade in history, John Paulson gained fame by betting against the U.S. housing market, which marked the onset of the 2008 financial crisis. His journey from a hedge fund manager to a philanthropist is a compelling…
Stochastic Oscillator Strategy
Introduction This tutorial will explain the Ichimoku Cloud indicator, and it will implement a trading example in Python using data from the iShares Core US Aggregate Bond ETF (AGG) and the Energy Select Sector SPDR Fund (XLE). Along the way,…
Introduction This tutorial will explain how to implement the Parabolic SAR indicator to build a trading strategy in Python, and along the way, it will introduce the Object Oriented Programming (OOP) approach to download the data, calculate the Parabolic SAR…
Introduction This article will implement a trading strategy utilizing the Commodity Channel Index (CCI) indicator. It will review the underlying theory. Subsequently, it will explain the procedure in Python for implementing the trading strategy on the SPY; furthermore, it will…
Introduction This tutorial will explain the construction of a Money Flow Index trading strategy to you in Python. Along the way, it will implement class inheritance approach to build the code. The aim of the article is to show the…
Introduction This tutorial will use Python to implement a profitable trading strategy using the Williams %R indicator. The first part will explain the indicator, and the second part will implement the Python code. The second goal is to illustrate how…
Investors often evaluate the performance of their portfolios by examining various metrics, and one crucial measure is drawdown. Drawdown represents the peak-to-trough decline in the value of a stock or portfolio during a specific period. It helps investors assess the…
Introduction This tutorial will implement the Chaikin Oscillator in Python using historical financial data from the iShares Russell 1000 Growth ETF (IWF). The first part will briefly review the theory behind this indicator. The second part will code a trading…
Average Directional Index The direction or trend has played a major role in the financial market. An increase or decrease in the price of a financial instrument can occur for two reasons: randomness or fundamental factors. There is a saying…
Introduction This tutorial will implement a ROC trading strategy using Python. The first part will briefly explain the indicator and its calculation. The second part will calculate the Python example. We show you how to build a profitable ROC-based trading…
Triple Exponential Moving Average (TEMA) This indicator is used to identify the trend, retracement, and potential support and resistance. After the development of the Double Exponential Moving Average (DEMA), Patrik Mulloy enhanced the indicator and developed the TEMA. The interpretation…
We show you how I build a profitable Hull-moving average strategy in Python. However, the main purpose of the article to show how it can be done using Python. The strategy itself is of minor importance in this tutorial. Hull Moving…
