Fund managers use different strategies to maximize returns and minimize risks for their investors. One of the strategies they use to hedge risk is market-neutral trading. This approach not only helps to reduce beta but also reduces systemic risks. But what are market-neutral trading strategies? A market-neutral strategy is a type of investment approach that…
The Commodity Futures Trading Commission (CFTC) publishes the Commitments of Traders reports every Friday at 3 pm US Central Time (CT). It releases the report to provide insight into market behavior for the benefit of the general public. What do you know about the Commitment of Traders report? The Commitment of Traders (COT) report is…
Channel trading can be profitable when used correctly. It can help you to track and speculate on the prevailing market trend, especially if you are a swing trader. But it can also be used in range-bound markets. Both mean-reversion traders and trend-following swing traders can make use of channel trading strategies. Let’s find out what…
Jesse Livermore was a legendary stock trader known for his exploits in the late 19th and early 20th centuries. He made and lost several fortunes in the stock market through speculative trades, utilizing his keen ability to read market trends and make bold moves. Livermore’s life story has inspired numerous books and movies, cementing his…
FOMC meetings can have a significant impact on financial markets as decisions on interest rates made during these meetings can influence the direction of monetary policy and market expectations. Many traders look forward to them and trade the immediate volatility that follows such meetings. Want to know about FOMC meetings (trading strategies)? The Federal Open…
As with FOMC meetings, ECB meetings can have a significant impact on financial markets, especially forex and European stock markets. Decisions on interest rates made during these meetings can influence the direction of the EU’s monetary policy and market expectations. Many traders look forward to them and trade the immediate volatility that follows ECB meetings….
Inverse ETF trading seeks to profit from declining market conditions by allowing investors to short an index or sector. It can be used to hedge against market risk, to trade a bearish bias on a specific sector or index, or as a tactical trading tool. An inverse ETF trading strategy can be useful for investors…
Risk management in stock trading involves taking steps to minimize potential losses. Many traders use the scaling-out strategy as part of their risk management approach, allowing them to lock in profits and reduce their exposure to potential market downturns. But what exactly does the scaling-out strategy mean? Scaling out is a stock trading strategy where…
Jack Bogle’s famous advice was to avoid searching for individual stocks, sectors, or markets that may perform better and simply invest in the entire market. This means using index funds to build a diversified portfolio. The Bogleheads 3 Fund Portfolio (global stocks, U.S. bonds) and Bogleheads 4 Fund Portfolio (global stocks, global bonds) are good…
William Bernstein is a former neurologist turned financial expert and writer. He believes, like many other successful investors, that index investing is better than selecting individual stocks and that how you allocate your assets is more crucial than choosing specific assets or timing your trades. He explains these concepts in depth in his debut book,…
Investors have a variety of options when it comes to investing strategies — Bond vs. Equity, Passive vs. Active, and Value vs. Growth strategy. Here, we focus on the two most popular strategies — Growth Investing and Value Investing. The two methods differ in many ways. Let’s find out. Value vs. Growth strategy is one…
The Magic Formula Strategy, popularized by Joel Greenblatt’s book “The Little Book That Beats the Market,” has received mixed reactions from the stock market. Some investors have reported positive results using the strategy, while others criticize it for lacking a solid theoretical basis and not taking into account company-specific factors. Let’s find out what the…
Rob Arnott is the founder and chairman of the board of Research Affiliates — a giant in wealth management with $193 billion in assets under management. Research Affiliates is famous for publishing seminal research and investing based on that research. It created the Rob Arnott Portfolio. Let’s see what the portfolio strategy is about. The…
Predicting stock markets has been an endeavor a lot of people have always tried to do. But it seems artificial intelligence may be better than humans in that regard. Machine learning has revolutionized trading, and hedge funds use machine learning trading strategies to predict market trends and beat the competition. But what are machine learning…
Harry Browne was an American investment advisor and financial writer. He was best known for his investment philosophy and strategies, which he outlined in several books. In his book “Fail-Safe Investing,” Harry Browne introduced the Permanent Portfolio as a way to ensure financial security. Let’s take a look at Harry Browne’s Permanent Portfolio. Harry Browne’s…
Frank Armstrong is a financial advisor, author, and the founder of Investor Solutions, a registered investment advisory firm based in Miami, Florida. With over 30 years in the financial industry, Armstrong has written several books on personal finance and investing, including “The Informed Investor” and “The Intelligent Asset Allocator”. He created the Frank Armstrong Ideal…
David Swensen was the President and Chief Investment Officer of Yale University endowment from the mid-1980s until his death in May 2021. Swensen, along with Dean Takahashi, invented The Yale Model. Let’s take a look at the David Swensen Portfolio (Yale Model). The David Swensen Portfolio is a diversified investment strategy developed by David Swensen,…
Ben Felix is a portfolio manager at PWL Capital in Canada, who is well-known for his YouTube channel, Common Sense Investing, and his podcast, Rational Reminder. He is widely recognized for his expertise in the field of investing and financial management and has created a model portfolio, the Ben Felix Model Portfolio. Let’s take a…
Given its wide range of uses, copper is commonly used as an indicator of global economic health. If you want to trade this popular commodity, it’s important to learn how copper is traded and choose the right copper trading strategy for you. Copper is one of the most popular industrial metal commodities to trade, and…
When it comes to price action trading, recognizing chart patterns on the chart may be the most important skill. While there are many chart patterns, the wedge pattern is one of the most reliable. Want to know about wedge trading strategy? The wedge trading strategy is a price action trading method that focuses on the…
Known as the Oracle of Omaha for his investment prowess, Warren Buffett is one of the most popular investors in the world. According to Bloomberg, Buffett has amassed a personal fortune in excess of $100 billion. Want to know about Warren Buffett’s strategy? Warren Buffett’s investment strategy is centered around finding undervalued companies with strong…
Successful trading is based on spotting the direction the price is headed. But while the price is the ultimate factor in determining profitability, the volume of transactions can offer a clue to shifting sentiment and how the price might move. This is why a volume trading strategy can be a game-changer for you. What is…
Cryptocurrencies are an emerging asset class, with huge volatility. Verge is one of the popular crypto coins you can trade with other cryptocurrencies. To trade it successfully, you must have a verge trading strategy. A Verge trading strategy is a plan for buying and selling the cryptocurrency Verge (XVG) in order to make a profit….
Most traders are only familiarized with the concepts of directional trading (looking for trading opportunities in both up and down directions) and non-directional trading (market-neutral position). What if we tell you there is a third approach to trading, known as unidirectional trading? Now, you are wondering what a unidirectional trade strategy means. A unidirectional trade…
Japan is the third largest economy in the world. It is a major player in the global financial markets, with a well-developed system of stock exchanges and a large securities industry. Day trading and swing trading thrive in Japan, so let’s take a look at Trading Japan. Home to the Tokyo Stock Exchange (TSE), the…
Italy runs a highly developed social market economy that is primarily based on small and medium-sized enterprises. It is the third-largest national economy in the European Union and the 10th-largest in the world by nominal GDP. So, Italy has a sizeable market for financial trading. Let’s take a look at Trading Italy (day trading, swing…
The US is the largest economy in the world and has the most vibrant and largest (by market cap) stock market on the planet. Many traders the world over want to trade in the US market. Want to know about trading in the US for foreigners, and how to go about it? Foreigners can trade…
The financial markets often show patterns where prices oscillate between one set of price ratios and another, making price projections possible. This is why some traders use patterns to formulate their trading strategies. The ABC pattern strategy is one such. Let’s take a look. The ABC trading strategy is a simple but effective pattern-based strategy…
If you want to know how the cost of living is changing, the CPI is one tool to check. Government agencies, businesses, investors, and traders use it to gauge inflation — the change in the prices of goods and services. Let’s take a look at CPI trading strategy. The CPI (Consumer Price Index) is a…
There are many exponential moving average (EMA) strategies, but the 50 EMA strategy is one of the most commonly used among traders in different financial markets. Let’s take a look at this 50 EMA strategy. The 50 EMA strategy is a technical analysis trading strategy that uses the 50-day EMA to identify the direction of…
The 9 EMA strategy is a widely used technical analysis indicator strategy among traders to identify short-term market trends. It involves the use of the 9-period exponential moving average to generate buy and sell signals. The strategy is easy to implement and can be applied to various financial instruments like stocks, forex, and commodities. Let’s…
Are you interested in investing in the Chinese stock market but don’t know where to start? Look no further! In this blog post, we will walk you through the different ways you can buy Chinese stocks and what you need to know before diving into this exciting investment opportunity. We’ll cover everything from investing in…
Among retail traders, only a few can afford a well-funded account with up to $50,000-100,000 in trading capital. Most retail traders have to find a way to trade and grow their relatively small accounts. Trading stocks with a small account requires careful risk management and money management, as there is little room for mistakes or…
The level of interest rates can have a wide-reaching impact, from the cost of taking a car loan to overall stock market performance. Interest rate changes are a highly watched economic indicator among traders. Do you have a central bank interest rate trading strategy? A central bank’s interest rate trading strategy involves buying or selling…
With its convenient time zone, use of English, and feather-light regulations, London is considered the financial capital of the world, and the UK is easily the highest net exporter of financial services globally. When it comes to trading the financial markets, the first name is London UK/England. Want to know about day trading and swing…
